The harmonic formation, which we used during the previous period, is still proving its efficiency. Silver was trapped within sideways range yesterday trending upwards, which is required to relieve momentum indicators. In general, more bearishness is awaited over intraday basistargeting 27.55, followed by 26.90. These levels are the awaited potential reversal zones of the harmonic pattern of AB=CD. At the same time, they represent the extended technical targets of the main butterfly pattern.
The trading range for today is among the key support at 26.90 and key resistance now at 29.85.
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.
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Eye On Silver
|Recommendation||Based on the charts and explanations above our opinion is, selling silver around 28.60 targeting 26.90 and stop loss with a four hour closing above 29.60 might be appropriate.|