Silver declined sharply as expected and as we believed areas of 41.20 was very strong and caused a downside correction indeed. Currently, the metal is fluctuating heavily, but we still expect further downside movement to retest mainly 37.05. The 37.95 level acts as a minor support, but consolidation below 40.40 supports our expectation; while a breach of 41.20 will negate our expectations.
The trading range for today is among the key support at 37.05 and key resistance now at 41.20.
The short-term trend 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 39.75 and take profit in stages at 37.95, 38.90, and stop loss with 4-hour closing above 40.40 might be appropriate|