After reaching the important levels of 36.43-check the previous report for more details about this level-, the bearish harmonic pattern over daily basis came back into focus. We can see two probabilities, while the decisive level is 37.20. Silver couldn't achieve stability above this level and thus, the harmonic pattern with 50%61.8% correction of AB leg and its CD represented 224% of BC leg becomes valid. Stochastic is showing bearish crossover and also RSI tries to confirm its negativity. To recap, the bearishness is in favor as far as trading remains below 38.15 and preferably below 37.20.
The trading range for today is among the key support at35.35 and key resistance now at 38.15.
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 37.00, gradually targeting 36.43, 36.05 and 35.35; while the stop is a daily closing above 37.95 might be appropriate.|