Classically speaking, silver has been capable of breaching the downtrend line- upper line of the bearish channel- with a daily closing above it yesterday. This incline makes us postpone thinking about the bearish pattern that was discussed in the weekly report. Now, clearing the pivotal resistance of 18.60 could help silver to re-test the upper line of the trading range areas, which started in the first week of April 2010. Thereby, potential upside actions could be seen over intraday basis, while indicators are positive finally after long time of giving neutral signals.
The trading range for today is among the key support at 18.25 and key resistance now at 19.75.
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, buying silver around 18.90 targeting 19.45 and stop loss below 18.45 might be appropriate.|