FX.co ★ Silver technical levels and trading recommendations for August 20, 2013

Overview

Like it was expected yesterday, the metal will continue its downward move in case of breaking the upward trend line. Today and as shown the metal already broke the it and currently is trading below. Presently the pair is approaching the support level 22.50. If the metal manages to break this support level and closes 4H below, more bearish move is still expected with more sell signals till reaching the support level 22.20, therefore we can consider our first traget few pips above this support level. But as long as silver trades above the support level of 22.50, this cancels the bearish move scenario.

Resistance and support levels: R3 (23.90), R2 (23.40), S1 (22.80), S2 (22.50), S3 (22.00)