Overview
The H4 chart demonstrates today that silver is still trading between the Support level of 34.25 and the Resistance level of 34.85 and fails to break the Support level 34.25 today. If silver continues the upward movement and manages to break this Resistance level, it will provide a good opportunity for buying above the Resistance level as well as make it possible to reach the Resistance level of 35.60 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 35.60 and close 4H above, we will get a bullish strength which will provide new buy signals and enable the Resistance level 36.00 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 of 34.85, this will be a strong indicator for the bearish move after closing 4H below the Support level of 34.25 enabling the Support level of 33.90. 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 of 34.85 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(36.00)
R2(35.60)
R1(34.85)
S1(34.25)
S2(33.90)
S3(33.20)
Trading Recommendations
According to previous analysis, we recommend buying in case of closing 4H above the Resistance level 34.85 with TP 35.50; SL closing 4H below the Resistance level might be appropriate.
