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

Overview

Based on the H4 chart, silver is still stabilizing below the Resistance level of 20.00 after its rebound from the Support level of 19.75 yesterday. If silver reverses its bullish move due to this Resistance level and manages to break the Support level of 19.75, this would give a strong indicator to continue the downward move and open the way towards the Support level of 19.50. Then, we should wait for the breakout of this level to continue the bearish move. On the other hand, if the pair can't break the Support level of 19.75 and reverses its downward move, it might be a good opportunity for bullish signals securing the Resistance level of 20.00 again. The breakout of this Resistance level will indicate a bullish strength providing new buy signals from this level till reaching the Resistance area of 20.20-20.50 .

Resistance and support levels: R3 (20.50), R2 (20.20), R1 (20.00), S1 (19.75), S2 (19.50), S3(19.20)