Overview

The H4 chart demonstrates today that silver takes slightly upward move after bouncing from Support level of 31.60. Presently, silver is testing the Resistance level of 32.20. If silver continues the upward movement and manages to close 4H above this Resistance level, it will provide a good opportunity to buy above the Resistance level as well as make it possible to reach the Resistance level of 32.50 as the level target. After that we should wait for breaking out of this Resistance level to continue the bullish move. In case silver is able to break the Resistance level of 32.50 and close 4H above, we will get a bullish strength which will provide new buy signals and enable the Resistance level of 33.00 as a level target. On the other hand, if silver reverses its bullish move and takes a downward move after its rebound from the Resistance level of 32.20, it will be a strong indicator for the bearish move after closing 4H below Support level of 31.60 enabling Support level of 31.20. In this case we should wait for breaking this Support level to continue the bearish view. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level of 32.20 is unbroken, the downward move is still expected and invalidating the upward movement. Therefore, we should wait for more confirmations before making the decision.

Resistance and Support levels

R3 (33.00) R2 (32.50) R1 (32.20) S1 (31.60) S2 (31.20) S3 (30.80)

Trading Recommendations

According to the previous analysis, we recommend buying in case of closing 4H above the Resistance level of 32.20 with TP 32.65; SL closing 4H below the Resistance level might be appropriate.