Silver touches the psychological barrier 20/05/2013

Silver price begun today and this week trading with sharp decline that allows it to approach from the psychological barrier 20.00, and bounces to achieve some bullish bias by the effect of the bearish channel’s support that appears in the image, besides Stochastic positivity.

Now, we need to stay aside temporarily, and the main reason is that the price reached the retest level of the previously breached main resistance which turned into support at 19.85- appears in the dashed red line-, thus the steadiness of this level might be a signal for the bullish trend return again, while confirming breaking it with a daily close below this level will open the way towards more downside track on the short term and medium term basis.

Expected trading range for today is between: 19.85 support and 22.00 resistance.

Expected trend for today: Neutral