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Since C wave of ZZ formation is somewhat complicated, we will analyze silver through a combination between harmonic patterns and Elliot waves. We will use a harmonic pattern that will connect the prior corrections appropriately, and a butterfly harmonic shape is the best one in this case as the metal is stable below 34.35 zones. This aforesaid harmonic structure suggests that the bearishness will continue towards 32.95 zones and a break of which will take us towards 31.35 where the first PRZ of the pattern exist. ADX reinforces the bullishness, while MACD is negative. RSI shows oversold signal and Stochastic might cause fluctuation during the downside journey.
The trading range for today is among the key support at31.35 and key resistance now at 35.65.
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 around 34.00 gradually targeting 33.05,32.45 and 31.35, while the stop loss is a daily closing below 35.65 might be appropriate.|