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In line with our yesterday's midday report, silver declined touching 38.05 zones affected by the bearish harmonic formation consisting of bearish CRAB and AB=CD patterns. The first technical objective of the CRAB pattern resides at 37.10, while the first objective of the AB=CD pattern resides at 37.60. As far as trading remains below 39.60 with a four hour closing-preferably below 39.10- the bearishness will be in favor over upcoming period, supported by RSI indicator.
The trading range for today is among the key support at 36.75 and key resistance now at 40.20.
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 38.90 gradually targeting 37.60,37.10 and 36.75 , while the stop loss is a four hour closing above 39.10 might be appropriate.|