Technical Analysis of Silver for October 26, 2016.

Technical outlook and chart setups:

Silver had also pushed higher
towards $17.86 levels yesterday and remained shy by just a couple pips from
previous highs. The metal is seen to be trading at $17.68 levels for now,
looking to correct lower towards $17.60/65 levels before resuming higher again (please note that the chart was prepared a few hours back and hence the drop has already been realized). The metal seems to have formed interim lows at $17.51 levels, and it should hold
well if the bullish structure is to remain intact. As an alternate though, if
prices drop below the trend line support as depicted here, the metal could be
heading to test $17.30 levels at least. The wave structure indicates that the metal is poised to produce a
counter trend rally this week and terminate around $18.50 levels. A turn lower
from there would push prices lower towards $16.50 levels before resuming
rally. It is recommended to remain flat
for now and look for opportunities to short again on rallies; aggressive
traders please remain long with risk at $17.30 levels. Immediate resistance is
seen at $18.50/19.00 levels, while support is at $17.30 levels respectively.

Trading recommendations:

Aggressive traders may remain
long, with stop at $17.30 and targeting $18.50 at least. Conservative trade
setup would be to go short on rallies towards $18.50 levels.

Good luck!

The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com