We remained neutral yesterday due to the uncertainty over the breach of 37.65 areas and with the breach silver rushed sharply to the upside. Stability above this level supports the possible bullish classic formation, and also changes the sideways range between 34.40 and 32.80 into a continuation pattern. This supports silver to resume the upside move as far as stability is above 34.40; the MA 10, 20 and 50 support the positive expectations while RSI offers overbought signals that might cause heavy volatility and possible slight downside correction moves.
The trading range for today is among the key support at 32.80 and key resistance now at 37.40.
The short-term trend is to the downside targeting 20.05 as far as areas of 38.00 remain intact with weekly closing.
*The chart above is based on NY time*
|Recommendation||Based on the charts and explanations above our opinion is buying silver around 35.10 and take profit in stages at 35.70, 36.20 and 36.80 and stop loss with four-hour closing below 34.40 might be appropriate|