Morning report

The duplicated bearish harmonic formation has forced the metal to breach the pivotal support level of 17.50 as seen on the provided four-hour chart. The candlestick formation is still negative under the negative pressure of SMA 20 -currently valued at 17.60-. Hence we think that the downside movements are to continue, targeting 16.70 zones which represent 61.8% Fibonacci level of our suggested CD leg. Stochastic supports our intraday bearish overview. Note that the correction may extend towards the broken support level before resuming the downside rally.

The trading range for today is among the key support at 16.45 and key resistance now at 18.50.

The general trend is to the upside as far as 12.45 remains intact with targets at 19.40.

RecommendationBased on the charts and explanations above our opinion is, selling silver from 17.45 targeting 16.80 and stop loss above 18.00 might be appropriate.