Silver inclined sharply and was able to breach the level of 32.80-95. Currently, the metal trades around a critical level, which is the 50% Fibonacci correction as shown above on the chart. We expect silver to extend the upside move, but momentum indicators are excessively overbought, which could trigger heavy fluctuations and maybe a sharp downside correction before the new bullish wave.
The trading range for today is among the key support at 30.25 and key resistance now at 35.10.
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 32.60 and take profit in stages at (33.35 and 34.00) and stop loss below 31.10 might be appropriate.|