FX.co ★ Silver technical levels and trading recommendations for April 22, 2013

Overview

The H4 chart demonstrates today that silver failed again to break the Support level 23.00 since last week and currently is trading between it and the Resistance level 23.90. Given that silver manages to close 4H below the Support level 23.00 and takes a downward move till reaching the Support level 22.50, it provides a good opportunity to sell below the Support level after closing 4H below it. 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 of 22.50 and closes 4H below, we will get a bearish strength, which will provide new sell signals and enable the Support level of 22.00 as a target level. On the other hand, if silver reverses its bearish move and takes an upward direction after its failure to break the Support level 23.00, it will be a strong indicator for the bullish move after closing 4H above the Support level enabling the Resistance level of 24.00. 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 of 23.00 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 (25.50) R2 (24.90) R1 (24.00) S1 (23.00) S2 (22.50) S3 (22.00)