Silver is in recovery mode for the day after the bears showed signs that exhausted and bounced back at key supports at the 16.420 level. After some fresh recovery attempts under way and the pair looks to rally showing a strong rejection at the zone. A sustained break at the 16.479 level is needed to signal further recovery and expose the key barriers. The pair is expected to limit recovery attempts before broader bulls resume. The metal is looking to generate a stronger signal for its near term direction.
The bulls would regain control on a decisive move above the pivot band at the 16.479 level. This is a significant medium term barrier which completes a base pattern. The resistance also coincides with the decline and capped the upside. The recent candle was stronger for the bulls with a rise at a high from the 16.42 level as the momentum indicators specifically the pair’s stochastic also approach key areas where they continue to hold. The four hourly charts show a recent decline that may be completed and look towards an uptrend which has been broken with the resistance of the 16.42 level increasingly key near term. The four hourly stochastic consistently is rising above the 10 level and would reflect a strong bullish trend. The four hourly charts are dropping below neutral but the pair at the 16.42 support is key. The pair trading below the 16.34 support level puts 16.18 back in sight.
Silver price fluctuates at the intraday and the pair’s bullish channel support appears on chart keeping its stability above the most important support at the 16.42 level. The pair gets a continuous positive support by the price action, while stochastic shows clear rising signals.
Therefore, we will continue to suggest the bullish trend on the intraday. We shall wait for price action surrounding area. This pair has been testing the support areas before any new attempt to raise short term basis. The price increases very fast reaches the pivot line which targets to begin at the 16.42 and extend to 16.62 levels. We shall wait for price action surrounding area and breaking this level will push the price to test the 16.79 areas before any new attempt to rise.
The pair’s expected trading range for today is between the 16.42 support and 16.62 resistance levels.
Expected trend for today: Bullish
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