Silver inclined yesterday despite trading weakly, where the metal provided closing above 50%Fibonacci correction of the XA leg of the Suggested Bat harmonic pattern for the second consecutive day. This correction at 40.90 is a critical intraday barrier, where consolidation above this critical level suggests further upside movement in attempt to retest the level of 42.95, where a breach of this level supports the possibility of forming the harmonic structure. Our positive expectations require stability above 38.80, where trading below this level should negate our expectations.
The trading range for today is among the key support at 38.80 and key resistance now at 42.95
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 around 40.90 and take profit in stages at (41.70 and 42.95) and stop loss with 4-hour closing below 40.10 might be appropriate.|