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Silver is Hovering near Key Support, Failure of 33150 Might Result in More Pain for Bulls

Silver ABCD 25nov15

Silver has been experiencing a strong down trend since it broke through the key support of 35000 which was also support line of a bearish flag continuation. Prices are now hovering near key support zones around 33400-33000. However, silver had witnessed some recovery on Monday and Tuesday but 2 days counter move is not enough to confirm a trend reversal. Today this metal has opened with a down side gap and staying below its opening price. We need a penetration of 33150 to confirm resumption to a larger degree down trend and then attempts towards 30700 zones can’t be ruled out. Stability below 33150 will also increase the possibilities of completion of CD leg (at 30700) of a bullish AB=CD pattern. Any move above 34200 might bring some recovery and then a jump towards 35200 can’t be ruled out. Any stability above 35200 zones might put this entire bearish setup in doubts where stability below mentioned resistance levels will keep on going down trend intact.

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