Silver continues to be influenced by the bearish Butterfly Pattern, which was completed at 31.22 top areas. This pattern is pressuring silver to the downside initially towards 127% at 27.52. The downside move from the top might also be another harmonic pattern an AB=CD, where the BC leg corrected 50% of AB which supports the resumption of the move towards 200% of BC leg at 26.90. Therefore, trading below 29.85 supports the continuation of the bearishness this week.
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 28.60 targeting 26.90 and stop loss with daily closing above 29.45 might be appropriate this week|