FX.co ★ Daily analysis of Silver for July 25, 2014

Overview

H4 chart: yesterday the metal failed to break the Support level of 20.00 to bounce again from it and trade between the Support level of 20.20 and the Resistance level of 20.50. Currently, the metal is approaching the Resistance level of 20.50. Therefore we should wait for closing above to continue its upward trend move. Given that the metal has managed to close 4H above today, this gives us a good opportunity for more bullish signals above it with the first target few pips below the Resistance level of 20.70, then the second target at 21.00 after breaking this Support level. But as long as silver is trading below 20.50, waiting would be prefered in this case. It cancels the bullish move scenario.

Resistance and support levels: R3(21.00), R2 (20.70), R1 (20.50), S1 (20.20), S2 (20.00), S3 (19.75).