Silver is still stable below 34.00 and 34.40, which drives us to expect that the metal is still forming the CD leg of the Butterfly harmonic pattern, especially when Stochastic reversed to the downside after reaching the 80-point level and providing a negative crossover. RSI also wasn't able to settle above the 50-point level. In result, we expect silver to decline again this week, awaiting negativity to become significant once the metal decline below 33.00. Consolidation above 34.65 should weaken our expectations.
The trading range for this is among the key support at 31.25 and key resistance now at 36.80.
The short-term trend is to the downside with steady weekly closing below 38.00 targeting 20.05.
***New York Candlesticks***
|Recommendation||Based on the charts and explanations above, our opinion is selling silver below 34.00, and take profit in stages at 33.20, 32.80 and 31.25 and stop loss with 4-hour closing above 34.65 might be appropriate|