Breaching the main harmonic support from the bottom A to the point C, as well as stability below 76.4% of CD leg supports our expectations that the harmonic pattern close to a butterfly pattern remains valid. Therefore,we expect further bearishness for silver this week,attempting once again to breach the trough at C and extend the decline towards 127% of CD at 27.53. Breaching the latter might expand the bearishness where our expectations require steady trading below 29.85 with four-hour closing.
The trading range for today is among the key support at 26.40 and the key resistance at 30.80.
The general trend over short term basis is to thedownside targeting 23.60 as far as areas of 30.80 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above, our opinion is selling silver around 29.00 targeting 27.55 and stop loss with daily closing above 29.85 might be appropriate this week|