The level of 41.20 has proved its strength and pushed silver to reverse sharply to the downside yesterday, but now we see some upside correction to relief Stochastic, while the metal is trading around 40.40 per ounce. We expect the suggested downside trend to continue, but stability below the mentioned resistance is required. A bearish reversal is seen on RSI which support our expectations.
The trading range for today is among the key support at 38.25 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.
|Recommendation||Based on the charts and explanations above we recommend selling silver below 40.40 and take profit in stages at (39.50, 38.70 and 38.25) and stop loss with 4-hour closing above 41.20 might be appropriate today.|