Technical outlook and chart setups:
Silver was trading within a
triangle consolidation structure after having formed intermediary lows at
$18.38 level earlier. The metal has broken above the consolidation as depicted
on 1H chart view here and is seen to be trading at $18.90 level for now. Looking
at the wave structure, there is no change and the metal still looks
constructive for bulls to stage a rally from here. Please note that the metal seems
to have terminated a regular flat (a-b-c) as wave 4 consolidation and the last
leg rally has resumed (wave 5) from $18.38 levels. Furthermore, it still
remains supported at fibonacci 0.50 levels of the entire rally between $15.70
and $21.13 levels respectively (not shown here). If this count holds true, the
metal should push higher towards $20.80/21.00 levels going forward and a break
above $19.00/10 levels would confirm the same. The metal is expected to remain
in control of bulls, till prices stay above $18.25 level. It is hence
recommended to remain long now, with stop below $18.25 level. Immediate
resistance is seen at $19.20 level, while support is at $18.25 level
respectively.
Trading recommendations:
Remain long for now, stop below
$18.25, targets are at $20.80 and above $21.13.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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