Overview

Proceeding from today's H4 chart, silver takes an upward movement till reaching the Resistance level 28.05 and currently is testing it. If silver continues its bullish view and manages to break this Resistance level, it will be a good opportunity to buy above the Resistance level as well as enable the Resistance level 28.60 as a level target, and then we should wait the breakout of this Resistance level for continuation of the bullish move. In case silver is able to break the Resistance level 28.60 and close 4H above, it will denote a bullish strength which provides new buy-signals enables the Resistance level 29.00 as a level target.

On the other hand, if silver reverses its bullish move taking a downward move after its rebound from the Resistance level 28.05, this will be a strong indicator for the bearish move after closing 4H below the Support level 27.50 enabling the Support level 27.00 then 26.70. In this case we should wait for breaking these Support levels to continue the bearish view. Based on the given H4 chart the technical indicators provide buy-signals, but as long as the Resistance level 28.05 is unbroken, the downward move is still expected and invalidating the upward movement. Therefore, we should wait for more confirmations before making the decision.

Resistance and Support levels

R3(29.00)
R2(28.60)
R1(28.05)
S1(27.50)
S2(27.00)
S3(26.70)

Trading Recommendations

According to previous analysis, we recommend buying in case of closing 4H above the Resistance level 28.05 with TP1 28.50 and TP2 29.00; SL closing 4H below the Resistance level might be appropriate.

Performed by Analytical expert: Hossam Soliman Ali
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