The spot rate is presently testing the upper limit of its medium term bearish channel in 32.90 and is expected to initiate a decline. However, a breakdown of these levels will reveal significant potential resulting in the beginning of a bullish trend.
Technical indicators do not provide clear signals but as the resistance is unbroken, the assumption of a decline is relevant. Bollinger bands have greatly tightened in recent days indicating a decline in volatility and the imminence of a violent movement.
Considering the previous situation, the market indicates a bullish opportunity as soon as the silver will has broken its resistance level 32.90 with a 1st objective seen at 33.50 and 33.70 levels. If the level 32.70 is broken down the proposed scenario will be cancelled.
