Looking at the chart above, we will find that the metal couldn't breach 41.20, which suggests that the downside correction is still available. Trading below 40.40 supports the downside trend, but now,stability below 44.00 is needed to confirm the return of the downside trend and to eliminate the possibility of formatting the butterfly harmonic pattern (more information and details are available in our previous and weekly reports). Consolidation below 44.00 with a four hour closing supports the downside trend's return.
The trading range for today is among the key support at 38.05 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 we recommend selling silver with 4-hour closing below 40.00 and take profit in stages at (39.20, 38.70 and 38.05) and stop loss with 4-hour closing above 40.80 might be appropriate today.|