FX.co ★ Daily analysis of Silver for October 01, 2014

Overview

As shown in the today's H4 chart, the metal failed to break the Support level of 16.80 to reverse its downward trend and is trading between the Support level of 17.00 and below the Resistance level od 17.30. Currently, it is testing the Resistance level and starting the bullish move. So we still suggest waiting for closing above the Resistance level of 17.30 to give us a new opportunity for more buy signals with the first target few pips below the Resistance level of 17.50. Then after breaking this Resistance level, silver would open the way towards the Resistance level of 17.75, which means more bullish signals, but as long as the metal trades below the Resistance level of 17.00 this cancels the bullish scenario. 

Resistance and support levels: R3 (17.50), R2 (17.30), R1 (17.00), S1 (16.80), S2 (16.50).