The metal dropped sharply after breaching the minor descending channel we mentioned yesterday, to breach the 37.00 important support level as well and end the day below the 200 days SMA suggesting more bearishness over the horizon. At the moment the metal is testing the projected support of the channel around 35.25, if the level was able to halt the downside move temporarily we may see a pullback to test the breached 200 SMA around 36.30, on the other hand a clear breach of the channels' support will open the door towards the main near term downside target at 33.00-33.50.
The trading range for today is among the key support at 33.00 and key resistance now at 37.00.
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 selling silver around 36.00 and take profit in stages at (35.00 and 33.50) and stop loss with 4-hour closing above 36.50 might be appropriate.|