Morning Report

Click on the image for a larger view

Influenced by the Bat pattern, the metal inclined towards the extended technical targets at 35.80 and 36.15. These levels might represent C point of 5-0 pattern as stability above 161.8% of AB leg will call for 200% and 224% according to the harmonic rules. Probably, we will witness a downside correction towards 34.50-34.35 areas to complete D level of 5-0 pattern before moving higher again. Breaching through 36.15 will bring additional bullishness since 5-0 pattern will fail.

The trading range for today is among the key support at 32.20 and key resistance now at 38.50.

The general trend over short term basis is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.

Previous Report

Weekly Report

RecommendationBased on the charts and explanations above our opinion is, buying silver around 34.50 gradually targeting 35.85,36.15 and 37.45 , while the stop loss is a daily closing below 33.60 might be appropriate.