Technical outlook and chart setups:
Silver has dropped lower and also hit the expected price around $14.60 levels, as discussed earlier. The metal is trading at $14.65/70 levels for now, and it might be looking to drop towards $14.50 levels before turning bullish again. Please note that fibonacci 0.618 support of the rally between $13.70 through $15.93 levels is falling around $14.50/55 levels. Furthermore, the past support turned resistance and trend line support would also converge at $14.50.55 levels respectively. Bulls are expected to regain control from there and resume rally. Hence it is recommended to book profits on short positions taken earlier and remain flat for now. Immediate support is seen at $14.50 levels, while resistance is $14.80/85 levels respectively.
Trading recommendations:
Take profits on short positions taken earlier and remain flat. Look to go long again on a bullish reversal.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com