Technical analysis of silver for October 19, 2016.
October 19, 2016 3:01 am
Technical outlook and chart setups:
The silver had dropped to $17.30 levels before pulling back and hit $17.70 levels hinting a break out. The metal is seen to be trading at $17.63 levels for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Currently, it is expected to correct lower and then push above $17.70 levels. Since the 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 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(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 are recommended to 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:
The silver had dropped to $17.30 levels before pulling back and hit $17.70 levels hinting a break out. The metal is seen to be trading at $17.63 levels for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Currently, it is expected to correct lower and then push above $17.70 levels. Since the 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 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(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 are recommended to 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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