Technical outlook and chart setups:
Silver had rallied on December 01, and took out resistance at the level of $16.70 levels. The metal is expected to pullback towards $15.30/50 levels at least before rallying further up. It is recommended to initiate long positions again on a pullback towards $15.40 levels, which could also be defined as a right shoulder for a potential inverted head and shoulder reversal. Support is seen at sub $15.30/40 (fibonacci 0.618 support), followed by $14.50 and lower while resistance is seen at $17.40/50, followed by $17.80/18.00 and higher respectively. Bulls shall remain in control till prices remain above $14.50 from here.
Trading recommendations:
Remain flat for now. Initiate longs at $15.40/50, stop at $14.20, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
