We haven't seen any 4-hour closing above 40.80 nor any trading above 41.20, while Stochastic ismovingwithin oversold areas. These negative signals suggest more bearishness. But, the current correction could be a flat correctional wave, where silver may be trading within the B wave of the flat correction, awaiting the completion of this wave to be confirmed, which will be followed by forming the bearish C wave, which usually represents an impulsive wave. Consolidation below 41.20 is necessary for our expectations to remain valid; however, trading below 40.40 should prove 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 chart and explanations above we recommend selling silver around 40.80 and take profit in stages at 38.25, 38.70, and 39.75 and stop loss with daily closing above 41.20 might be appropriate|