Technical outlook and chart setups:
Silver has finally taken out major resistance at $17.75/77 levels today. The metal printed a high at $17.80/82 levels before pulling back and should be looking to drop lower from here on. It seems that the metal has carved out a major top at $17.80/82 levels today and that the metal should produce a meaningful retracement going forward. Please note that the fibonacci 0.618 support of the recent rally from $14.60 levels is passing through $15.90 levels (past resistance turned support). The metal could probably form its next major base around $15.80/90 levels before resuming the rally. It is hence recommended to remain short for now, with risk above $17.82 levels. Immediate resistance is at $17.80 levels, while support is seen at $16.80 levels respectively.
Trading recommendations:
Remain short now, stop above $17.82, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com