Silver inclined yesterday, while the metal is currently trading around the critical levels of 42.20. We expect silver to resume the previous upside trend, reaching the level of 42.95 and stabilizing above it. This suggests that the positive move should bring the medium term harmonic outlook back, which is forming a harmonic structure, while stability above 40.90 supports the suggested upside movement. We should observe the pair's behavior between 43.25 and 44.20, where these levels represent the previously reversal potential zones and could specify the strength of the current upside move.
The trading range for today is among the key support at 40.40 and key resistance now at 44.20.
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 42.20 and take profit in stages at (43.25 and 44.20) and stop loss with 4-hour closing below 41.45 might be appropriate.|