Overview
The H4 chart demonstrates today that yesterday silver failed to break the strong Support area of the downward trend line with the Support level 28.45 and is still trading between the Support level 28.45 and the Resistance level 29.00. If the pair manages to break this Support area and closes 4H below it, it provides a good opportunity to sell below the downward line, then the Support level 28.45. 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 and enable the Support level of 28.00 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 string Support area, it will be a strong indicator for the bullish move, after closing 4H above the Support level enabling the Resistance level of 29.00 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 28.45 and the downward trend line are 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 (30.20) R2 (29.45) R1 (29.00) S1 (28.45) S2 (28.00) S3 (27.50)
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