Silver breached the downtrend line of the descending channel as seen on the provided four-hour chart. It succeeded in building a classical base of a suggested head and shoulders bottom pattern. It is presently fluctuating around the neckline of the pattern due to the overbought signs appearing on momentum indicators but we think that, it could activate this highly anticipated bullishness over intraday basis once it breach 18.05 zones.
The trading range for today is among the key support at 17.40 and key resistance now at 18.65.
The general trend over the short term basis is to the upside, targeting $ 21.50 per ounce as far as areas of 16.20 remain intact.
Weekly Report Previous ReportSupport17.9017.8017.7217.6517.55Resistance18.1518.2518.3018.3518.46RecommendationBased on the charts and explanations above our opinion is, buying silver from 17.95 targeting 18.55 and stop loss below 17.40 might be appropriate.