Silver declined yesterday, covering the opening gap seen at the beginning ofthe week, where the metal reached the supportof 42.75 and then, rebounded sharply to the upside to approach 44.35, which represents the first suggested target of bullish movement, expected yesterday. As shown above, we find that, forming the suggested Bat harmonic structure is still possible (to the left), while the CD leg could be itselfan AB=CD harmonic pattern (to the right). Therefore, we expect the upside movement to extend on intraday basis and stability above 42.95 should support our positive expectations.
The trading range for today is among the key support at 41.70 and key resistance now at 45.85
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 43.25 and take profit in stages at (44.35 and 45.85) and stop loss with daily closing below 42.15 might be appropriate.|