Morning Report

As we expected yesterday, silver declined sharply to reach near the first target of the harmonic structure, which represents 38.2% Fibonacci correction of the CD leg of the Bat harmonic pattern. But, stability below 43.55 and 44.20 drive us to expect another downside movement today, towards the first target around 42.30 and maybe the second target, which represents 61.8% Fibonacci correction. Stochastic is within overbought areas, while RSI is near those levels, which support our negative expectations.

The trading range for today is among the key support at 40.90 and key resistance now at 45.00

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

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RecommendationBased on the charts and explanations above, we recommend selling silver around 43.50and take profit in stages at (42.30 and 41.50) and stop loss with 4-hour closing above 44.20 might be appropriate.