Today silver takes a downward move after it has bounced from the Resistance level 28.75 yesterday. Now silver is trading between the Resistance level 28.75 and the Support level 28.40 and presently is testing the Resistance level. If silver is able to break the Resistance area 28.75 - 29.00, this will be a good opportunity for bullish movement enabling the Resistance level 28.70. Then we should wait for breaking this level to continue the bullish move giving new bullish signals. On the other hand, if Silver can't break the Resistance area 28.75 - 29.00 and bounces from it, this will provide us a good opportunity to buy enabling the Support level 28.40. Then if silver manages to break this Support level and to close 4H below, this will indicate a bearish strength providing new sell-signals enabling the Support level 27.95. Proceeding from the today's H4 chart – technical indicators provide bullish signals, but as long as the Resistance level 28.75 is unbroken, the downward move is still expected invalidating the bullish outlook. Therefore we should wait for more confirmations before making the decision.
Resistance and Support levels:
R3(29.70)
R2(29.00)
R1(28.75)
S1(28.40)
S2(27.95)
S3(27.35)
Trading Recommendations
According to previous analysis, we recommend buying in case of breaking the Resistance area 28.75-29.00 with TP 29.60; SL breaking 4 hours below the Resistnace area might be appropriate.
