Silver is currently facing the upper line of the recently established descending channel, while the upside recovery from 17.40 zones is to be seen as a normal correction for the collapse from 19.80 to 17.40 zones as it bounced exactly from 50% Fibonacci level. Now, the bearish effect of the bearish harmonic three drives pattern could be resumed during this week. A break of 19.25 zones could negate this outlook.
The trading range for this week is among the key support at 17.40 and key resistance now at 19.45.
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.
Previous ReportSupport18.2518.1518.0517.9017.80Resistance18.5518.6018.7418.8519.00RecommendationBased on the charts and explanations above our opinion is, selling silver from 18.55 targeting 17.80 and stop loss above 19.20 might be appropriate.