Proceeding from today's H4 chart, silver takes a slightly downward move after its rebound from the Resistance level 28.40 yesterday, and currently is testing the Support level 28.05. If silver continues its bearish move and manages to break the Support level, this will open the way towards the Support area 27.70-27.50, then we should close 4H below this Support area to give more bearish-signals. If silver is able to break this Support area and close 4H below, it will denote a strong indicator for more downward movement enabling the Support level 27.00 as a level target. On the other hand, if silver fails to break this Support level 28.05 and reversed its bearish move, this may denote a strong indicator for the bullish move till reaching the Resistance area 28.40-28.60, then we should wait for breaking this Resistance area and closing 4H above to continue the bullish-signals and open the way towards the Resistance level 29.00 as a level target. Based on the given H4 chart, the technical indicators provide sell-signals but as long as the Support level 28.05 is unbroken the upward move is still expected and invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support Levels
R3(29.00) R2(28.60) R1(28.40)
S1(28.05) S2(27.70) S3(27.50)
Trading Recommendations
According to previous analysis, we recommend selling in case of closing 4H below the Support level 28.05 with TP 27.55; SL closing 4 hours above the Support level may be appropriate.
