Silver had dropped to $17.30 level on Friday before pulling back. The metal is seen to be trading at $17.45 level for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Please note that it is quite possible that the metal may resume its long term rally from here, since the metal has bounced from a multi-month trend line support. The wave structure also indicates that the metal is expected to produce a counter trend rally at least towards $18.50 level. If the metal reverses from $18.50/19.00 levels, then it would form base around $16.50/60 levels which is also the fibonacci 0.618 support of the entire rally between $13.70 and $21.10 levels respectively. It is recommended to remain flat for now and look for opportunities to short again on rallies. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.00 levels respectively.
Trading recommendations:
Remain flat for now. Aggressive traders may remain long, with stop at $17.00 and targeting $18.50 at least.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Technical outlook and chart setups:
Silver had dropped to $17.30 level on Friday before pulling back. The metal is seen to be trading at $17.45 level for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Please note that it is quite possible that the metal may resume its long term rally from here, since the metal has bounced from a multi-month trend line support. The wave structure also indicates that the metal is expected to
produce a counter trend rally at least towards $18.50 level. If the metal
reverses from $18.50/19.00 levels, then it would form base around $16.50/60
levels which is also the fibonacci 0.618 support of the entire rally between
$13.70 and $21.10 levels respectively.
It is recommended to remain flat for now and look for opportunities to
short again on rallies. Immediate resistance is seen at $18.50/19.00 levels,
while support is at $17.00 levels respectively.
Trading recommendations:
Remain flat for now. Aggressive
traders may remain long, with stop at $17.00 and targeting $18.50 at least.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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