Silver had dropped to $17.30 levels earlier before pulling back and hit $17.77 levels hinting a break out. The metal is seen to be trading at $17.71 levels for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Silver is lagging slightly behind its counterpart, gold, and it is expected to correct lower and then push above $17.77 levels. Since silver has bounced off a multi month support trend line, the trend is likely to continue from here. The wave structure also indicates that the metal is expected to produce a counter trend rally towards $18.50 levels at least. If the metal reverses from $18.50/19.00 levels, then it will 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 (not shown here). It is recommended to remain flat for now and look for opportunities to sell again on rallies. Aggressive traders should remain long with risk at $17.00 levels. Immediate resistance is seen at $18.50/19.00 levels, while support lies at $17.00 levels.
Trading recommendations:
Remain flat for now. Aggressive traders should 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
levels earlier before pulling back and hit $17.77 levels hinting a break
out. The metal is seen to be trading at $17.71 levels for now, looking to stage
a counter trend rally towards $18.50/19.00 levels. Silver is lagging
slightly behind its counterpart, gold, and it is expected to correct lower and then push
above $17.77 levels. Since silver has
bounced off a multi month support trend line, the trend is likely to continue from here. The wave structure also indicates that the metal is
expected to produce a counter trend rally towards $18.50 levels at least. If
the metal reverses from $18.50/19.00 levels, then it will 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 (not shown here). It is recommended to remain flat for now and
look for opportunities to sell again on rallies. Aggressive traders should remain long with risk at $17.00 levels. Immediate resistance is seen at
$18.50/19.00 levels, while support lies at $17.00 levels.
Trading recommendations:
Remain flat for now. Aggressive
traders should 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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