The silver is currently testing the intermediate resistance of its medium term bearish channel in 33.90 and seems to initiate a decline. However a break of these levels would free a large potebntial and allow it to reach the upper limit of its channel to 34.30.
Technical indicators provides sellers with signals and are approaching the overbuy zone supporting the assumptions of a decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market indicates a bullish opportunity as soon as the silver will have broken its resistance in 33.90 with a 1st objective of 34.30, then 34.50. A break in 33.70 would invalidate this scenario.

The material has been provided by Instaforex Company - instaforex.com

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