Morning report

Under the negative pressure of the pivotal resistance level of 17.85, we believe that silver has already placed the fifth wave of our suggested [IM] that started at 16.00 zones. Therefore [A-B-C] corrective formation is underway for the time being to complete the short term Elliott sequence. Hence, we still keep our potential downside over the intraday basis, supported by RSI 9 and AROON bearish signs.Targets are pointing to 16.75 zones.

The trading range for today is among the key support at 16.35 and key resistance now at 18.60.

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 17.95 might be appropriate.