Technical outlook and chart setups:
Silver drops below $17.65 to $17.40 levels, breaking below the trend line support as it is seen on the chart. Please also note that the metal is trading very close to the Fibonacci 0.382 support at $17.35 levels. A break below $17.35 would challenge support at $16.60/70 (the Fibonacci 0.618 support) levels. It is recommended to hold earlier long positions if profits are not realized, and also look for adding further positions around $16.60. Immediate support is seen at $17.35, followed by $17.00, $16.60 and lower while resistance is seen at $18.20 (interim), followed by $18.40/50 and higher, respectively. Please remember that the bigger picture is buy on dips, and this is just a counter trend.
Trading recommendations:
Remain long and look for adding further around $16.60, stop is at $15.50, target is $21.00 at least.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
