Technical outlook and chart setups:
Silver is trading at the levels of $16.83 for now and could be preparing to drop lower from here before rallying further. It is recommended to initiate short positions at the current levels ($16.80/85) with risk at $17.40. The metal had bounced earlier from the levels of $16.45 and pushed higher through $17.09 yesterday. The current chart setup favors bears to take control and push prices lower to the levels of $16.00 before rally could resume. Please note that the metal could be just in a counter trend towards the levels of $16.00. Immediate support is seen at $15.80 followed by $15.30 and lower, while resistance is seen at $17.40/50 followed by $18.40/50 and higher, respectively.
Trading recommendations:
Initiate short positions now. Stop is at $17.40, target is $16.10.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
