Technical outlook and chart setups:
Silver inched higher to $14.40 after having tested the back side of the resistance trend line as seen here. The metal has retraced lower since then and reached lows at $14.10 until now. Please note that $14.10 is also the Fibonacci support of 0.618 of the rally from $13.91 to $14.41. A bullish bounce now could trigger a counter trend rally towards $14.90 and higher. It is hence recommended to initiate long positions now with risk at $13.70. Immediate support is seen at $14.00 followed by $13.91 and lower, while resistance is seen at $14.45 and higher. A breakout below $13.90 could see the metal dropping towards at least $13.00.
Trading recommendations:
Initiate long positions, stop is seen at $13.70, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com