Proceeding from today's H4 chart, silver stabilizes between the Support 26.60 and the Resistance level 27.25 having a slightly correction after its rebound from the Support level 26.60. If silver continues its bearish move and manages to break the Support level 26.60, this will give a strong indicator for the downward move and open the way towards the Support level 26.00, then we should wait for the breakout of this level to continue the bearish move.
On the other hand, if the pair doesn't break the Support level 26.50 and reverses its downward move, it may be a good opportunity for a bullish signals enabling the Resistance level 27.25. The breakout of this Resistance level means a buulish strength providing new buy-signals from this level till reaching the Resistance level 27.70 then 28.20.
Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level 26.60 is unbroken the upward move is still expected and invalidating the bearish outlook. Therefore we should wait more confirmations before making the decision.
Resistance and Support levels:
R3(28.20)
R2(27.70)
R1(27.25)
S1(26.60)
S2(26.20)
S3(26.00)
Trading Recommendations:
According to previous analysis, we recommend selling in case of breaking the Support level 26.60 with TP 26.05; SL closng 4 hours above the Resistance level might be appropriate.
