Silver also collapsed downwards, approaching the defined technical target of 17.20, influenced by the hourly bearish harmonic [Bat] pattern as we discussed yesterday. Now, breaching the uptrend line of this harmonic structure has cleared the path for further bearishness over the intraday basis. Note that the current correctional movement may extend towards 17.55-17.60 zones in order to re-test the broken trend line before resuming the downside rally, targeting 16.90 zones.
The trading range for today is among the key support at 16.40 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.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver from 17.55 targeting 16.90 and stop loss above 18.10 might be appropriate.|