Silver declined sharply yesterday, reaching levels around 40.25 as we expected. Today, the metal returns to trade above 61.8% Fibonacci correction of the CD leg of the Bat harmonic pattern, and also above (B) point top around 41.45. Consolidation below 38.2% Fibonacci correction of the CD leg should keep the harmonic structure effective unless other technical signs contradict the pattern. On the other hand, consolidation above 61.8% Fibonacci correction could support the metal positively. Therefore, we remain neutral today after our suggest scenario was completed.
The trading range for today is among the key support at 40.10 and key resistance now at 43.65
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 remain neutral today, awaiting more confirmations|