In line with our yesterday's proposed scenario, silver declined towards the initial support levels of 18.25. In addition to the bearish harmonic structure which appeared on Stochastic, the candlestick formation that was drawn yesterday was definitely negative. AROON up-colored in green- finally moved downwards, indicating that the positive pressure decreases gradually. Therefore, the allover bearish classical pattern is still in favor and we might witness descending actions over intraday basis.
The trading range for today is among the key support at 17.65 and key resistance now at 18.95.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver with a breakout below 18.25 targeting 17.70 and stop loss above 18.70 might be appropriate.|