Morning Report

Our expectations for yesterday failed, after silver declined sharply. However, we didn't witness any consolidation below the critical of 41.70 (check our Weekly Report for more information regarding this level; therefore, the upside movement could return and complete the Bat harmonic pattern, where the CD leg of this pattern is close to be a possible AB=CD harmonic structure.Stability above 42.20 isessentialtokeep our expectations as unchanged.

The trading range for today is among the key support at 40.10and key resistance now at 40.80

The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact

Previous Report

Weekly Report

RecommendationBased on the charts and explanations above, we recommend buying silver with 4-hour closing above 42.20 and take profit in stages at (43.85 and 44.80) and stop loss with daily closing below 41.70 might be appropriate.