Overview
The H4 chart demonstrates today that silver takes a downward move after its rebound from the upper limit of the bullish channel and the Resistance level 28.40 and presently it is testing the Support level 27.85. If silver continues its bearish view and manages to break this Support level, it will provide a good opportunity to sell below the Support level as well as will make it possible to reach the Support level 27.50 as a level target. After that we should wait for breaking out of this Support level to continue the bearish move. In case silver is able to break the Support level 27.50 and close 4H below, we will get a bearish strength which will provide new sell signals and enable the Support level 27.20 as a level target.
On the other hand, if silver reverses its bearish move and takes an upward move after its rebound from the Support level 27.85, this will be a strong indicator for the bullish move after closing 4H above the Support level enabling the Resistance level 28.40 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 27.85 is unbroken, the upward move is still expected and invalidating the downward movement. Therefore, we should wait for more confirmations before making the decision.
Resistance and Support levels
R3(29.10)
R2(28.95)
R1(28.40)
S1(27.85)
S2(27.50)
S3(27.20)
Trading Recommendations
According to previous analysis, we recommend selling in case of closing 4H below the Support level 27.85 with TP1 27.40 and TP2 27.00; SL closing 4H above the Support level might be appropriate.
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