After reaching areas of 29.27 yesterday, silver rushed to the upside to trade above 29.80, which is the top C of the bullish AB=CD pattern. This move signals further bullishness towards 127% correction of CD leg and maybe towards 161.8% correction through A; therefore, the metal might test areas of 30.72 and stability above will take it towards 31.22 and 31.90. Each of the levels will be observed separately as a successful breach of each signals the move towards the following and failure to stabilize above the target might trigger a strong downside reversal. Momentum indicators are overbought which might increase the volatility though stability above 29.80 will keep the upside move valid.
The trading range for today is among the key support at 28.95 and the key resistance at 31.90.
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 31.10 targeting 31.90 and stop loss with four-hour closing below 29.46 might be appropriate|