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The metal surged sharply yesterday as we expected, but without reaching lower levels before that, which pushed momentum indictors into overbought areas. The 41.20 level represents a critical barrier and as shown on the chart above; we can see the Fibonacci ratios connection, which will be discussed later, if it proved to be connected to the harmonic pattern. The minor image shows us the critical upside support at 39.70; trading between 39.70 and 41.20 means that the metal is currently trading in a sideways range, but with intraday downside bias, while momentum indicators are within overbought areas and a breach of 39.70 could lead the metal to the downside today. The downside move is a correctional move unless proved otherwise, and stability above 41.20 negates the possibility.
The trading range for today is among the key support at 37.60 and key resistance now at 42.50
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
Weekly ReportSupport40.2039.7039.1038.9038.25Resistance40.9041.2041.8542.2042.50RecommendationBased on the charts and explanations above our opinion is selling silver with a breach of 39.70 and take profit in stages at 39.10, 38.25, and stop loss with 4-hour closing above 40.40 might be appropriate OR selling silver around 41.20 and take profit in stages at 40.40 then 39.70 and stop loss with four-hour closing above 41.85