The decline seen yesterday was unable to record a 4-hour closing below 39.75 and formed an ideal Gartley pattern as shown on the chart. The metal reached the first target of the pattern, which represents 38.2% Fibonacci correction of the CD leg at 40.80, and according to harmonic rules, stability above this level suggests an upside movement towards the second target at 41.55 and maybe the first extended target at 42.05, which represent 61.8% and 78.6% Fibonacci correction respectively. Stability with 4-hour closing below 39.75 is required to support our expectations.
The trading range for today is among the key support at 38.10 and key resistance now at 43.50.
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 40.40 and take profit in stages at (41.55 and 42.05) and stop loss with 4-hour closing below 39.75. In case the metal reached our stop loss point, we recommend selling silver around 39.75 and take profit in stages at (38.80 and 38.10) and stop loss with 4-hour closing above 40.40 might be appropriate.|