FX.co ★ Silver technical levels and trading recommendations for March 13, 2013

Overview

The H4 chart demonstrates today that silver takes an upward move after it has managed to break the Resistance level 29.00. But it is still trading inside the bullish channel and testing the lower boundary of the bullish channel. If silver continues the upward movement and manages to break the Resistance level 29.65, it will provide a good opportunity to buy above the Resistance level as well as make it possible to reach the Resistance level of 30.20 as the level target. After that we should wait for breaking out of this Resistance level to continue the bullish move. In case silver is able to break the Resistance level of 30.20 and close 4H above, we will get a bullish strength which will provide new buy signals and enable the Resistance level of 30.50 as a level target. On the other hand, if silver reverses its bullish move and manages to break the lower boundary of the bullish channel, it will be a strong indicator for the bearish move after closing 4H below Support level 29.00 and enabling Support level of 28.45. In this case we should wait for breaking this Support level to continue the bearish view. Based on the given H4 chart, the technical indicators provide buy signals, but as long as the Support area 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 (30.50) R2 (30.20) R1 (29.65) S1 (29.00) S2 (28.45) S3 (28.00)