Click on the image for a larger view
Although the metal has moved mildly upwards but we can see how the resistance line of the proposed huge pennant pattern represents a barrier that could force it to move downwards once more. In the interim, Stochastic started to be negative within overbought areas. Thereby, we believe that the bearishness will dominate the movements over intraday basis but not before breaching 36.90 areas.
The trading range for today is among the key support at 34.25 and key resistance now at 39.75.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling silver with a breakout below 36.90 targeting 34.15 and stop loss above 38.50 might be appropriate.|