We will look at the hourly interval and we will see how a bullish channel was formed from 33.66 zones. This channel was breached today and SMA 20 is only thing that protects the metal. Stochastic and RSI are trending downwards and that may be a coverage process for the gap. If silver succeeded in covering this gap, areas around 35.27 will be touched. Henceforth, 38.2% of the entire incline will be retested and that is why we suggest potential downside move for today. This classical outlook is supported by the bearish harmonic pattern discussed in the weekly report.
The trading range for today is among the key support at 34.30 and key resistance now at 37.75.
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 with a breakout below 36.05 , targeting 35.00 and stop loss with a four hour closing above 36.50 might be appropriate.|