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
|Recommendation||Based 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.|