Areas of 39.20 was able to stop silver's negative momentum, which suggests forming a bullish Bat harmonic pattern. Currently, the pair attempts to consolidate above the Simple Moving Average 20, while the Relative Strength Index attempts to confirm the breach of the 50-point level. All these factors together make us to turn positive, and could support the metal's attempts to enter a bullish wave affected by the suggested harmonic pattern. A Four-hour closing below 39.20 is sufficient to negate the intraday bullish wave today.
The trading range for today is among the key support at 37.45 and key resistance now at 42.70.
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 above 39.80 and take profit in stages at (40.80 and 41.25) and stop loss with 4-hour closing below 39.20 might be appropriate.|