Silver - The Key Levels for Trading

The market formed a new swing low higher than the previous one when the price bounced from 15.00 support level. For confirmation an uptrend, the price will have to break the downtrend line and the local swing high at 15.50 level. It will give a new swing high and confirmation of the uptrend. We will be able to open buy trades based on this breakout signal or reversals from the uptrend line. Buy positions will be opened in the direction of the main market movement from the daily timeframe.

For confirmation the further downward movement, the price will have to bounce from the resistance zone formed by SMA100 and the downtrend line. The breakout below the local uptrend line and 15.20 support level will confirm the falling. It will be a new sell opportunity with profit targets at the support levels. As SMA100 from the daily timeframe is not far from the possible level of breakout, sell trades will have limited space for the downward movement and they will be against the main trend. As a result, it will be better to use lower timeframes for opening sell trades for short term trading.