Morning Report

On the four hour image, we see that silver managed to achieve the breach of main support for the bullish trend. Currently, silver has built base above the 38.2% correction, shown in the image, which therefore may cause a bullish correction that will retest support levels that had been previously breached around 16.10. In overall, we expect silver to witness more bearish movement; where the suggested waves have been numbered on the image above, which suggests a bearish correction after its is retested. The stochastic is a good candidate to be retested; whereas the RSI insures the overall bearish trend.

The trading range for today is among the key support at 15.55 and the key resistance at 16.30.

The general trend is to the upside as far as 12.45 remains intact with targets at 20.15.

RecommendationBased on the charts and explanations above our opinion is selling silver from 15.95 targeting 15.35 and stop loss above 16.30, might be appropriate.