Silver is retesting the downside support?
Silver is testing a previously broken hard downside resistance 24.50-25 zone. A long-term falling trend line with well-defined breakout levels is being tested. A confirmed break above 24.60 is now crucial for an upside reversal. A rejection here and follow-through below 23.60 are required for the downside extension in a 3rd wave as we can see on the monthly chart.
On a daily chart, we can see that the pair is in consolidation retest just below key upside resistance 24.60. A confirmed break above 25 is now required for the downside invalidation. Our trading system is indicating a potential of 200-500 points of profit in the case of a confirmed rejection from 24.60. The short entry could be triggered here with the stop loss above 25.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
