Technical outlook and chart setups:
As discussed yesterday, prices still remain well within the sell zone of the sloping down trendline. Also, a retracement has been underway from 28.00 level and the metal has stalled around 27.30/40 for now. It remains quite possible for the prices to form base around 27.00/10 level, which is re-enforced by Fibonacci 0.618 support as shown here. Major support remains at 26.30/50 levels, while immediate resistance is at 29.20/30/50 levels. The prices should rally and take out at least resistance at 29.30/50 to negate further bearish trend. Please note that a break of 26.00 level from here could prove vital for bulls; as major trend reversal is possible then. Till then, silver should be looking higher.
Trading recommendations:
Hold on to long positions, stop is at 25.95, and target is open (long-term). Immediate target is at 29.50.
Good luck!
