Overview

The H4 chart demonstrates today that silver takes a bearish move after its rebound from the Support level 32.65 and currently is trading between the Support level 32.00 and the Resistance level 32.40. If silver continues its bearish move and manages to break the Support level and manages to break it, it will provide a good opportunity to sell below the Support level 32.00 till enabling the Support level of 31.50 as a level target. After that we should wait for breaking out of this Support level to continue the bearish move. In case silver is able to break the Support level of 31.50 and closes 4H below, we will get a bearish strength which will provide new sell signals and enable the Support level of 31.00 as a level target.

On the other hand, if silver reverses its bearish move and takes an upward direction after its rebound from the Support level of 32.00, it will be a strong indicator for the bullish move after closing 4H above the Support level enabling the Resistance level of 32.40. In this case, we should wait for breaking this Resistance level to continue the bullish view. Based on the given H4 chart, the technical indicators provide sell signals, but as long as the Support level of 32.00 is unbroken, the upward move is still expected and invalidating the downward movement. Therefore, we should wait for more confirmations before making a decision.

Resistance and Support levels

R3 (33.00) R2 (32.65) R1 (32.40) S1 (32.00) S2 (31.50) S3 (31.00) 

Trading Recommendations

According to the previous analysis, we recommend selling in case of closing 4H below the Support level of 32.00 with TP 31.55; SL closing 4H below the Resistance level might be appropriate.