Overview
Like we expected yesterday, the H4 chart demonstrates today that silver failed to break the Resistance level 28.00 and currently the metal is starting to reverse its bullish movement and approaching the Support level 27.50. If silver manages to close 4H below the Support level 27.50, it provides a good opportunity to sell below the Support level 27.50 with a level target of 27.00. 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 26.60 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 27.50, it will be a strong indicator for the bullish move, after closing 4H above the Support level enabling the Resistance level of 28.00 again. 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 27.50 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 (29.00) R2 (28.45) R1 (28.00) S1 (27.50) S2 (27.00) S3 (26.60)
