Overview

Like we expected yesterday, silver will take a downward movement after breaking the Support area 28.40 - 28.15 and closing below 4H. Proceeding from the today's H4 chart silver has taken a downward movement after breaking the Support area and closing below 4H. Currently silver is testing the Support level 27.70 and trying to break it in order to continue its bearish move. If silver is able to break this Support level and close 4H below this will provide a strong indicator for bearish signals enabling the Support level 27.35.
On the other hand, if silver doesn't break the Support level 27.70 and bounces from it to test the Resistance level 28.00 , it will be a good opportunity to buy above the Resistance area 28.00 - 28.20 enabling the Resistance level 28.60, then we should wait for breaking this Resistance level to continue the bullish move.
Based on the today's H4 chart, the technical indicators provide bullish signals, but as long as the Resistance area 28.00 - 28.20 is unbroken the downward move is still expected and invalidating the bullish outlook.

Resistance and Support levels:

R3(29.60)
R2(28.20)
R1(28.00)
S1(27.70)
S2(27.35)
S3(27.00)
Trading Recommendations:

According to previous analysis, we recommend buying in case of breaking the Resistance area 28.00 - 28.20 with TP1 28.55 and TP2 28.90; SL closing 4 hours below the Resistance area may be appropriate.
The material has been provided by Instaforex Company - instaforex.com

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