FX.co ★ Silver technical levels and trading recommendations for April 15, 2013

Overview

Like we expected last week, the H4 chart demonstrates today that silver continued its downward movement after it managed to break the Support area 25.50-25.00 last week. Currently silver is trading below the Support level 23.90 and we should wait closing 4H below it to get a new opportunity to sell. If silver manages to close 4H below this Support level, it provides a good opportunity to sell with a level target of 23.00. After that we should wait for breaking out of this Support level to continue the bearish move, then we will get a bearish strength, which will provide new sell signals again and enable the Support level of 22.75 as a target level. On the other hand, if silver reverses its bearish move and takes an upward direction after its failure to close 4H below the Support level 23.90, it will be a strong indicator for the bullish move, after closing 4H above the Support level enabling the Resistance level of 25.00 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 23.90 is unbroken, the upward move is still expected invalidating the downward movement. Therefore, we should wait for more confirmations before making a decision.

Resistance and Support levels R3 (26.00) R2 (25.50) R1 (25.00) S1 (23.90) S2 (23.00) S3 (23.75)