Technical outlook and chart setups:
Silver moved higher last week and hit highs of $15.04 as expected. The metal is trading lower now at $14.90 looking for an opportunity to reach the last high before reversing lower. Please note that the metal has hit Fibonacci 0.50 resistance levels of the earlier drop from $16.35 through $13.60 at $15.00/05 on Friday. The metal may push through $15.25 before reversing lower, but the recommended trading strategy suggests selling on rallies. Immediate resistance is seen at $15.25 (the Fibonacci 0.618), followed by $16.35 and higher, while support is seen at $14.25 and $14.00.
Trading recommendations:
Remain flat for now and look for further confirmations for going short.
Good luck!
