Silver’s sharp decline today suggests that near term rally is temporarily over after breaching 30 handle just very briefly. Covering of Monday’s gap suggests that it has now turned into consolidations. While deeper pull back cannot be ruled out, we’re not expect a change in the trend yet. Strong support will likely be seen around 4 hour 55 EMA (now at 26.58) to contain downside.
We’re expect another rise through 30.07 to 61.8% projection of 11.67 to 29.84 from 21.88 at 33.10, at a later stage. Though, sustained break of the 4 hour 55 EMA will dampen this bullish view and extend sideway trading below 30.
