FX.co ★ Daily analysis of Silver for February 06, 2014

As it was expected last week, Silver would take an upward move after breaking the Resistance area of 19.50-19.75. Currently, it is testing the Resistance level of 20.00 trying to break it through to continue its bullish move. More buy-signals would be provided in case of closing 4H above this Resistance level with the first target few pips below the Resistance level of 20.20, then we should wait for closing above this Resistance level to get more bullish signals. Therefore, presently we recommend waiting till breaking the Resistance level of 20.00 before decision making. But as the price is trading below the Resistance level, it cancels the first scenario.

Resistance and support levels: R3(20.50), R2 (20.20), R1 (20.00), S1 (19.75), S2 (19.20), S3 (19.00).