Bears showed a strong indecision above the daily cloud which twisted earlier today and is widening on the Silver Commodities.
The pair’s double rejection on the four hour chart and the recent doji is a sign that the pair may be tested on both sides. This confirms the near term scenario with a fresh rejection attempts started earlier in the day. Being so far limited by 50SMA, the pair’s support still holds above the price action. Currently, pair is testing the 17.06 zone for further move to decide on the break below this level.
Based on the technical analysis, the pair remains firmly bearish on four hour chart and favors a further downside move. This persist the fear to decline and keep the price under pressure.
The pair selling upticks is seen as the preferred near term scenario as reversal of slow stochastic from over brought territory supports with strong offers rejected at this zone.
A breakout above the latter would delay bears for extended correction towards descending. The pair remains weak and vulnerable to the downside despite its price hesitation. The pair’s resistance comes in at the 17.15 level with a cut through here opening the door for more upside towards the 17.29 level. A further resistance lies at the 17.40 level where a break will expose this level. Conversely, support lies at the 17.06 level where a violation will aim at the 17.00 level which align with the 50SMA. A break of here will aim at the 16.92 level. The pair trading below here will open the door for more weakness towards the new lows. On the whole, the pair faces further corrective pullback threats.
Silver price keeps fluctuating within sideways and tight range around the EMA50. The pair’s stochastic begins to provide a positive overlapping signal on the four hours’ time frame and supports the chance of declining in the upcoming sessions. We keep waiting to test the 17.00 level initially.
Therefore, the bearish trend will remain valid in the upcoming period unless the pair breaks at the 17.15 level and holds above it. This reminds you that breaching this level will push the price towards the 16.83 level as a next main target.
The pair’s expected trading range for today is between the 17.00 support and 17.15 resistance levels.
Expected trend for today: Overall Bearish
For more detailed analysis from the author, please visit NoaFX.
This article was originally posted on FX Empire
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