Technical outlook and chart setups:
Silver looks to have formed
interim lows at $17.00 level before pulling back higher. The metal is seen to
be trading at $17.34 level for now, looking to stage a counter trend rally
towards $19.00 level. The wave structure also indicates that the metal is into
its wave C correction within the 3-wave A-B-C drop that began from $21.10
level earlier. The metal is expected to 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. It is
recommended to book profits on short positions taken earlier and wait for
opportunities to sell again. Immediate resistance is seen at $19.60 level,
while support is at $17.00 level respectively.
Please take profits on short
positions taken earlier and remain flat for now.
The material has been provided by InstaForex Company – www.instaforex.com