Technical outlook and chart setups:
Silver is now preparing for an extended rally through the levels of $14.30/50. The metal is producing an engulfing bullish candlestick pattern on the H4 chart indicating potential reversal. Please note that the metal has been confined into a cone type consolidation pattern since several trading sessions looking for an opportunity to break out above $14.30 this time. Also, the metal is expected to accelerate moving upside once it breaks out of the resistance line shown here. Immediate support is seen at $13.70/75, while resistance is seen at $14.30. Bulls should be poised to remain in control until prices stay broadly above $13.65.
Trading recommendations:
Remain long, stop is at $13.65, a target is at $14.40/60 and $15.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com