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02.07.2012 01:54 PM
Silver Technical Levels and Trading Recommendatios for July 2 , 2012

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Overview
Proceeding from the today's H4 chart, silver has bounced from the meeting point of the upper boundary of the bearish channel and the Resistance level 27.90, taking a downward move and presently trading between the Support level 27.00 and the Resistance level 27.90. If silver continues its bearish move and manages to close 4H below the Support area 27.00-26.70, keeping its move inside the bearish channel, it will be a strong indicator for the bearish move enabling the Support level 26.10 as a level target, and then we should wait for breaking this Support level to continue the downward movement.
On the other hand, if silver reverses its bearish move and is able to break the Resistance level 27.90 and close 4H above, this will be a good opportunity to buy above the Resistance level and enabling the Resistance level 28.30, and then we should wait for breaking this Resistance level to continue the bullish move. In case of closing 4H above this Resistance level, this will denote a bullish strength providing new buy-signals enabling the Resistance level 29.00. Based on the given 4H chart, the technical indicators provide sell-signals, but as long as the Support level 26.70 is unbroken the upward move is still expected and invalidating the bearish outlook. Therefore, we should wait for more confirmations before making the decision.

 

Resistance and Support levels
R3(29.00)
R2(28.30)
R1(27.90)
S1(27.00)
S2(26.70)
S3(26.10)

Trading Recommendations
According to previous analysis, we recommend selling after closing 4H below the Support level 26.70 with TP1 26.00; SL closing 4H above the Support level may be appropriate.

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