Technical outlook and chart setups:
Silver has dropped lower as expected after reversing from $20.05 levels last week. The metal is seen to be trading at $19.41 levels for now, looking to continue dropping lower, provided the price stays below $20.05/10 levels. Please note that a pullback rally
towards $19.80 levels remains probable before the drop continues. The wave
structure still indicates that the rally from $18.65 levels unfolded into 3 waves
that are corrective. Hence the metal is expected to drop lower unfolding into
5 waves and could also break below $18.40 levels going forward (minimum
downside extensions are depicted in the red color). Note that silver
has reversed lower from the Fibonacci 0.786 retracement of its earlier swing as
discussed earlier. It is hence recommended to remain short with risk at $20.35
levels. Immediate resistance is seen at $20.10 levels, while support is at $19.00
levels.
Trading recommendations:
Remain short for now, stop is at
$20.50, target is open.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
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