08.10.201501:35 Forex Analysis & Reviews: Daily analysis of Silver for October 08, 2015

Overview

According to the attached H4 chart, silver price tests the support base formed above the level of 15.85 after breaching it previously, while stochastic gains positive momentum heading towards oversold levels. Amid that the chances for a continuation of the bullish trend are still valid in upcoming sessions. It depend mainly on the stability above the level of 15.40. Note that the targeted level represents 61.8% Fibonacci level for a decline from 17.75 to 13.96, as breaching it will impel the price to extend its gains in the short term, while we should take into consideration that a breakout at 15.40 will put the price under the negative pressure forcing it to return to the main bearish trend.