Silver can be expected to fall further toward the next support level 31.00 (which stopped the earlier short term correction 2 at the end of September).
– Silver reversed from resistance zone
– Likely to fall to support level 31.00
Silver recently reversed down from the resistance zone located between the long-term resistance level 32.50 (which stopped the weekly uptrend in May, as you can see from the daily Silver chart below), and the upper daily Bollinger Band. The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Long legged Doji, which stopped the earlier short-term impulse wave 3, which is a part of the higher order impulse wave (3) from the start of September.
Given the strength of the resistance level 32.50 and the bearish divergence on the daily Stochastic, Silver can be expected to fall further toward the next support level 31.00 (which stopped the earlier short term correction 2 at the end of September).
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