Technical analysis of silver for October 18, 2016.
October 18, 2016 1:40 am
Technical outlook and chart setups:
Silver had dropped to $17.30 levels on Friday before pulling back. The structure remains unchanged for now. The metal is seen to be trading at $17.57 levels, looking to stage a counter trend rally towards $18.50/19.00 levels. Silver has just resumed pushing higher, a break above $17.70 levels should accelerate the movement. Please note that it is quite possible that the metal may resume its long term rally from here, since it 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 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 (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 hould 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 on Friday before pulling back. The structure remains unchanged for now. The metal is seen to be trading at $17.57 levels, looking to stage a counter trend rally towards $18.50/19.00 levels. Silver has just resumed pushing higher, a break above $17.70 levels should accelerate the movement. Please note that
it is quite possible that the metal may resume its long term rally from here,
since it 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 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 (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 hould 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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