Technical outlook and chart setups:
Silver prints fresh lows today around $17.30/35 before bouncing back sharply towards $17.80 levels as seen here. The metal is forming a hammer on the daily chart at the moment, indicating a potential pullback or reversal ahead. Immediate support is seen at the $17.05 level followed by $16.50 while resistance is seen at $18.60/70 (previous support turned into resistance), followed by $19.50, $20.00 and higher respectively. It is recommended to wait for a bottom and reversal signal on the daily chart view for now. On a larger time frame, (not shown here), the metal is at a fibonacci 0.786 support level of the entire rally from $08.00 to sub $50.00. A reversal here would be constructive for bulls to resume the larger upswing. Aggressive short positions could be avoided at the moment.
Trading recommendations:
Remain flat for now.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
