Overview
The H4 chart demonstrates today that silver is still trading between the Support level 28.45 and the Resistance level 29.00 after its failure to break the Resistance level 29.00 yesterday. Given that the pair bounces from the Resistance level and manages to break the Support level 28.45 and closes 4H below, it provides 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 then we will get a bearish strength, which will provide new sell signals and enable the Support level of 28.00 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 28.45, it will be a strong indicator for the bullish move after closing 4H above the Support level enabling the Resistance level of 29.00. 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 28.45 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 (30.20) R2 (29.65) R1 (29.00) S1 (28.45) S2 (28.00) S3 (27.50)
Trading recommendations: According to the previous analysis, we recommend selling in case of closing 4H below the Support level of 28.45 with TP 28.05; SL closing 4H below the Resistance level might be appropriate.
