Silver soared trading above the important level of 39.10. Its important comes form the mixture between our previous caught AB=CD pattern with the recently drawn CRAB pattern. Both of them will are completed around 39.10. Thereby, coming beneath this level will bring strong bearish correctional wave. On the other hand, a four hour closing above 39.60 will damage the harmonic formation. Momentum indicators reflect strong overbought case.
The trading range for today is among the key support at 34.75 and key resistance now at 41.00.
The general trend over short term basis is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 38.90 | 38.25 | 37.60 | 37.45 | 37.10 |
| Resistance | 39.60 | 40.20 | 40.40 | 40.90 | 41.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling silver again around 39.10 gradually targeting 38.25,37.60 and 37.10 , while the stop loss is a four hour closing above 39.60 might be appropriate. The stop loss of the morning report should be moved to the last aforementioned level. | ||||
Please see the attached chart below...