Silver has further dropped towards fresh lows at $19.00 levels before pulling back slight higher. The metal is seen to be trading at $19.07 levels at this moment and it should be looking to produce a counter trend rally any time now. Please note that the trend line support will act as resistance now for any counter trend rallies that materialize. The wave structure still indicates that the rally from $18.65 levels unfolded into 3 waves which are corrective. Furthermore, the metal has dropped lower unfolding into 5 waves now (fresh lows at $19.00 levels). Please also note that Silver has reversed lower from the fibonacci 0.786 retracement of its earlier swing as discussed earlier. It is recommended to book partial profits on short taken earlier and wait for further opportunities to go short. Immediate resistance is seen at $20.10 levels, while support is at $18.65 levels respectively.
Trading recommendations:
Please book partial profits on shorts taken earlier. Stop at 20.50, target is open.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Technical outlook and chart setups:
Silver has further dropped
towards fresh lows at $19.00 levels before pulling back slight higher. The
metal is seen to be trading at $19.07 levels at this moment and it should be
looking to produce a counter trend rally any time now. Please note that the
trend line support will act as resistance now for any counter trend rallies
that materialize. The wave structure still indicates that the rally from $18.65
levels unfolded into 3 waves which are corrective. Furthermore, the metal has dropped
lower unfolding into 5 waves now (fresh lows at $19.00 levels). Please also
note that Silver has reversed lower from the fibonacci 0.786 retracement of its
earlier swing as discussed earlier. It is recommended to book partial profits
on short taken earlier and wait for further opportunities to go short.
Immediate resistance is seen at $20.10 levels, while support is at $18.65
levels respectively.
Trading recommendations:
Please book partial profits on
shorts taken earlier. Stop at 20.50, target is open.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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