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Target done this is the title which describes the violent declines occurred yesterday since 46.10 areas have been reached easily yesterday -we recommend reviewing the weekly report-. Silver has lost about 10% of its total value within one trading day, forming the first bearish candlestick formation since April, 11 as seen on our daily graph. These aggressive bearish movements might continue over intraday basis, affected by the following technical factors:
The bearish harmonic AB=CD pattern.
The obvious bearishness appearing on momentum indicators, particularly RSI 14 which is valued at 77.00 despite of the aforesaid collapse.
The continuation effect of the aforementioned bearish candlestick.
The trading range for today is among the key support at 42.10 and key resistance now at 48.90.
The general trend over short term basis is to theupside targeting 50.20 as far as areas of 42.10 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver around 46.00 targeting 42.50 and stop loss above 48.20 might be appropriate.|