After touching 26.67 levels, the metal soared, influenced by the effect of the bullish AB=CD pattern. This pattern took it towards the first technical objective. In the interim, Stochastic is showing overbought signs along with an attempt of a bearish crossover. In general, we see chances for additional bullishness towards the second technical target of the pattern at 28.53. As far as trading remains above 26.55, we will look at the upside and this outlook will fail if we witnessed a four hour closing below 26.00.
The trading range for today is among the key support at26.00 and key resistance now at 29.05.
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, buying silver around 27.25 targeting 28.53 and stop loss with a four hour closing below 26.50 might be appropriate.|