Just one four hour closing above 30.35 and it was followed by long black candlestick that canceled out this positive closing and this is expected price behavior during this period. The bearishness was confirmed via our previous suggested harmonic formation of the butterfly pattern. The metal is now trading around 38.2% -first technical target- and therefore, we may witness additional bearishness over intraday basis towards 61.8% and may be 76.4% and 100% or even 127% as extended targets of CD leg. Fluctuation may occur due to Stochastic negative sign.
The trading range for today is among the key support at26.65 and key resistance now at 30.10.
The general trend over the short term basis is to the downside targeting $ 22.95 per ounce as far as areas of 29.80 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver around 29.05 targeting 27.40 and stop loss with a four hour closing above 30.00 might be appropriate.|