As we mentioned in our previous report, the level of 41.20 is the critical barrier which separates between twoElliott scenarios, where today silver is stable above this level, which activated our positive expectations. But, according to the flat wave pattern's rules, we find that it is possible for the B wave to extend far away from the start point of the wave A, where 42.05 represents 127.0% Fibonacci correction of the A wave -explained upon the first chart-, but as shown on the second chart, we need the metal to breach 42.05 to confirm the new impulsive wave and to negate the flat wave possibility. Momentum indicators are within overbought areas, which could cause heavy fluctuations, however, consolidation above 41.20 should support the upside move expectations.
The trading range for today is among the key support at 39.10 and key resistance now at 43.45.
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 buying silver around 41.20 and take profit in stages at (42.05, 42.50 and 43.45) and stop loss with 4-hour below 40.40 might be appropriate today|