Overview
Proceeding from the today's H4 chart, silver is trading between the Support level 29.65 and the Resistance level 30.20, after its failure to break the Support level 29.65. But presently it is testing the Resistance level 30.20 which means almost bearish strength in case of bouncing from it. If the pair fails to break the Resistance level and closes 4H below it, this will give a strong indicator for a bearish movement enabling the Support level 29.65. Then we should wait for breaking this level to continue the bearish view. On the other hand, if silver is able to break the Resistance level 30.20, this will provide us a good opportunity to buy, enabling the Resistance level 30.75. Then we should wait for closing above the Resistance level to continue the bullish movement. If silver breaks this Resistance level it indicates a bullish strength providing new buy-signals with 31.20 level target, the technical indicators will provide sell-signals. But as long as the Support level 29.65 is unbroken, the upward move is still expected also invalidating the bullish outlook. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support levels
R3(31.20) R2(30.75) R1(30.20) S1(29.65) S2(29.20) S3(29.00)
Trading recommendations: According to the previous analysis, we recommend selling after bouncing from the Resistance level 30.20 with TP1 29.75, SL closing 4-hour chart above the Resistance level 31.80.
