Overview
H4 chart demonstrates today that silver starts to take a downward move after breaking the Support level 30.20 and currently is trading below it. Given that the pair manages to break the Support level 30.20 and closes 4H below, it will provide a good opportunity to sell below the Support level. After that we should wait for breaking out of this Support level to continue the bearish move and then we will get a bearish strength, which will provide new sell signals and enable the Support level of 29.60 as a target level. On the other hand, if silver reverses its bearish move and takes an upward direction after its failure to break the Support level 30.20, it will be a strong indicator for the bullish move after closing 4H above the Support level enabling the Resistance level of 30.75. 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 30.20 is unbroken, the upward move is still expected invalidating the downward movement. Therefore, we should wait for more confirmations before making a decision.
Resistance and Support levels
R3 (31.50) R2 (31.20) R1 (30.75) S1 (30.20) S2 (29.60) S3 (29.00)
Trading recommendations: According to the previous analysis, we recommend selling in case of closing 4H below the Support level of 30.20 with TP 29.75; SL closing 4H below the Resistance level might be appropriate.
