Silver rallies as expected. 22.50 is immediate resistance. Exit long positions
October 18, 2013 6:15 am
Technical outlook and chart setups:
The metal has bounced off from a series of convergence as depicted in the chart. The rising trendline, the fibonacci 0.618 retracement level, the past resistance turned support. It is recommended to exit long positions for now and await for the next clarification in the wave structure. Immediate resistance is at 22.50, followed by 23.50 and 25.00; while initial support begins at 20.50, followed by 19.00 and 18.00 respectively. If the rising trendline breaks down, the metal would be heading towards fresh lows; on the flip side, a break of resistance at 22.50 and at 23.50 would confirm a continued rally. At the moment, keeping the larger trend in view (downward), selling rallies should be preferred.
Trading recommendations:
Exit long positions for now. Initiate small quantities in short positions, stop is at 23.50.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Technical outlook and chart setups:
The metal has bounced off from a series of convergence as depicted in the chart. The rising trendline, the fibonacci 0.618 retracement level, the past resistance turned support. It is recommended to exit long positions for now and await for the next clarification in the wave structure. Immediate resistance is at 22.50, followed by 23.50 and 25.00; while initial support begins at 20.50, followed by 19.00 and 18.00 respectively. If the rising trendline breaks down, the metal would be heading towards fresh lows; on the flip side, a break of resistance at 22.50 and at 23.50 would confirm a continued rally. At the moment, keeping the larger trend in view (downward), selling rallies should be preferred.
Trading recommendations:
Exit long positions for now. Initiate small quantities in short positions, stop is at 23.50.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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