Silver started to gather the needed momentum from 28.15 and 28.00 areas, which pushed the metal higher to acquire all the targets for the past period. We believe that the metal is still likely to move higher to breach 76.4%, which is the first extended AB=CD target to move to the top C at 29.85. At the same time; Stochastic needs to unload the negative momentum and breach 28.85-28.95 and stabilize above it. In general, stability above 61.8% correction at 28.45 increases the likelihood for further bullish attempts.
Note: We recommend observing trading closely as Silver acquired the appropriate upside targets and now the failure to breach any coming target might trigger a strong reversal
The trading range for today is among the key support at 27.65 and the key resistance 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.
|Recommendation||Based on the charts and explanations above, our opinion is buying silver around 28.50 targeting 28.95 and stop loss with four-hour closing below 27.65 might be appropriate today|