FX.co ★ Daily analysis of silver for January 09, 2014

Overview

Based on H4 chart, silver is still stabilizing between support at 16.00 and resistance level of 16.50 after its rebound from the Resistance level of 16.50 yesterday and its failure to break it. If silver continues its bearish move and manages to break the support level of 16.00 which is being tested now, it would give a strong indicator for the downward move and would open the way towards the support level of 15.50. Then we should wait for the breakout of this level to continue the bearish move. On the other hand, if the pair fails to break the support level of 16.00 and reverses its downward move, it may be a good opportunity for bullish signals enabling the resistance level of 16.75 in order to test it again. The breakout of this resistance level will denote a bullish strength providing new buy signals from this level until reaching the resistance level of 17.00.

Resistance and support levels: R3 (17.00), R2 (16.75), R1(16.50), S1 (16.00), S2 (15.50), S3 (15.20)