First of all, we recommend reviewing our weekly report for details regarding the several options we face. Currently, silver is still trading above the critical support of the upside trend at 40.80 as shown on the hourly interval, where this support stopped the metal’s negative momentum. We still expect an upside trend, but in fact, a breach of 40.35-10 could negate our bullish wave and lead a bearish structure that might trigger a downside movement.
The trading range for this week is among the key support at 38.25 and key resistance now at 45.00.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 40.90 | 40.40 | 40.10 | 39.75 | 39.10 |
| Resistance | 41.50 | 41.85 | 42.30 | 42.70 | 43.25 |
| Recommendation | Our weekly expectations are still valid, but based on the charts and explanations above and in case a breach of 40.10 was seen, a downside movement is possible, and therefore we move our weekly stop loss point to 4-hour closing below 39.75. In case the metal reached our stop loss point, we recommend selling silver around 39.75 and take profit in stages at (38.80 and 38.10) and stop loss with 4-hour closing above 40.30 might be appropriate. | ||||
Please see the attached chart below...