Technical outlook and chart setups:
Silver hit fresh highs at $21.20/30 levels in the first week of July 2016 and has been trading lower since then. The metal made lows at $19.20 levels last Friday and is seen to be trading at $20.55 levels at the moment. Please note that potential still remains for a rally through $21.50 levels before producing a meaningful retracement lower. On the flip side, if the prices remain below $21.20/30 levels, bears might stay in control, pulling the metal lower. A break below $19.20 levels would be extremely encouraging to bears going forward. It is hence recommended to remain short now, with risk above $21.50 levels. Immediate support is seen at $19.20 levels (intermediary), while resistance is at $21.20/30 levels respectively. Indicators are beginning to show signs of a bearish divergence (not shown here).
Trading recommendations:
Remain short, stop above $21.50 levels, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com