Overview
The H4 chart demonstrates today that silver is trading between the Resistance level of 28.05 and the Support level of 27.90 after breaking the Support level of 27.90. Currently silver is testing the Resistance level of 28.05 and trying to break it through in order to continue its bullish view. If silver continues the upward movement and manages to break this Resistance level, it will provide a good opportunity to buy above the Resistance level as well as make it possible to reach the Resistance level of 28.40 as a level target. After that we should wait for breaking out of this Resistance level to continue the bullish move. In case silver is able to break the Resistance level of 28.40 and closes 4H above, we will get a bullish strength which will provide new buy signals and enable the Resistance level 29.00 as a level target.
On the other hand, if silver reverses its bullish move and takes a downward move after its rebound from the Resistance level 28.05, this will be a strong indicator for the bearish move after closing 4H below the Support level 27.90 enabling the Support level 27.65. In this case we should wait for breaking this Support level to continue the bearish view. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Resistance level 28.05 is unbroken, the downward move is still expected and invalidating the upward movement. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support levels
R3(29.00)
R2(28.40)
R1(28.05)
S1(27.90)
S2(27.65)
S3(27.10)
Trading Recommendations
According to previous analysis, we recommend buying in case of closing 4H above the Resistance level 28.05 with TP 28.37; SL closing 4H below the Resistance level might be appropriate.
