Technical outlook and chart setups:
Silver is seen to be trading around $18.93 levels at this moment, after forming lows at $18.70 levels earlier this week. Please note that the metal has produced a regular flat as wave 4 consolidation. It might push lower below $18.70 levels one last time before turning bullish again. Furthermore, the metal has bounced from fibonacci 0.382 levels of the entire rally between $15.70 and $21.13 levels respectively. If this count holds true, the metal should resume its last leg rally (wave 5) towards $20.80/21.00 levels going forward. The metal is expected to remain in control of bulls, till prices stay above $18.60/70 levels. It is hence recommended to remain long now, with stop below $18.25 levels. Immediate resistance is seen at $20.50 levels, while support is at $18.25 levels respectively.
Trading recommendations:
Remain long for now, stop below $18.25, target $20.80 and above $21.13.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com