The metal declined violently, attempting to confirm breaching 35.20 levels; whilst a long black candlestick pattern started to appear on the four hour timescale-secondary image-. Actually, we can see signs of forming a bearish classical pattern with a neckline at 34.30 zones and thus trading below 36.05-36.30 could make it a valid pattern. This pattern-secondary image- confirm the previous explained bearish harmonic pattern of AB=CD. In general, we suggest possible bearishness over intraday basis and may be over the upcoming period, targeting 34.30 and a break of which will bring additional downside actions towards 38.2% Fibonacci retracement of CD leg at 32.82. On the other hand, a breakout above 36.05 will damage this scenario.
The trading range for today is among the key support at32.80 and key resistance now at 37.20.
The general trend over short term basis is to theupside,targeting 39.05 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 35.35 targeting 32.85 and stop loss with a daily closing above 36.05 might be appropriate.|