Stability above 30.30 again after reaching lower levels yesterday confirmed the validity of the ascending triangle formation, where as shown on the minor image, and after reaching the triangle's base, the metal returned to incline, to currently settle above 50% Fibonacci correction, where this move is accompanied with the positivity seen on Stochastic, as the indicator attempts to breach the 50-point level. Therefore, we expect an upside movement today, supporting silver to test primarilythe resistance level at 34.30, while consolidation above 34.60 could trigger a test of levels around 35.05. Consolidation below 32.40 can negate our suggested scenario.
The trading range for today is among the key support at 31.60 and key resistance now at 36.80.
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 33.30 and take profit in stages at (34.30 and 35.05) and stop loss below 32.05 might be appropriate.|