Silver rallied through $19.60/70 levels last week as expected and discussed and reversed sharply from there as seen on the 4H chart view. The metal has dropped to fresh lows at $18.70 levels and is seen to be trading at $18.86 levels for now. The wave structure also indicates that the metal has now completed its 3-wave corrective rally towards $19.60/70 levels and is expected to drop lower unfolding into 5 waves towards $18.20 levels at least. Please note that the metal might produce intraday rallies from current levels but they should remain well capped below $19.60/70 levels and it should be viewed as an opportunity to add further short positions ($19.30 levels). It is recommended to remain short for now and also look to add further at higher levels. Immediate resistance is seen at $20.10 level, while support is at $18.65 level respectively.
Trading recommendations:
Remain short for now, stop is above $20.05, a 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 rallied through $19.60/70 levels last week as expected and discussed and reversed sharply from there as seen on the 4H chart view. The metal has dropped to fresh lows at $18.70 levels and is seen to be trading at $18.86 levels for now. The wave
structure also indicates that the metal has now completed its 3-wave corrective
rally towards $19.60/70 levels and is expected to drop lower unfolding into 5
waves towards $18.20 levels at least. Please note that the metal might produce
intraday rallies from current levels but they should remain well capped below
$19.60/70 levels and it should be viewed as an opportunity to add further short
positions ($19.30 levels). It is recommended to remain short for now and also
look to add further at higher levels. Immediate resistance is seen at $20.10
level, while support is at $18.65 level respectively.
Trading recommendations:
Remain short for now, stop is above
$20.05, a target is open.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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