The price of silver recently experienced a clear downward bounce after retesting the broken neckline of a head and shoulders pattern. The metal tested the key support at 23.00, establishing a robust support line. Subsequently, silver initiated an upward move. However, the market is currently influenced by conflicting factors, prompting a cautious stance to await clearer confirmation signals for the next trend.
Monitoring the price closely, traders are advised to stay on the sidelines until a definitive signal emerges. This clarity may come through either breaching the resistance at 23.70 or breaking the support at 23.00.
A breach of the 23.00 support could signify a resumption of the bearish wave, targeting the 22.25 areas as the next main station. On the contrary, surpassing the resistance at 23.70 would be a positive development, potentially leading to a recovery and the formation of a bullish wave. The initial target for such a bullish scenario is set at 24.60.
The expected trading range for the day is anticipated between the support at 22.80 and the resistance at 23.70. As the market currently displays neutral tendencies, investors are advised to exercise patience and wait for confirmation signals before taking significant positions.
