Technical outlook and chart setups:
Silver had pushed through $21.15 level earlier before pulling back lower. The metal is seen to be trading at $20.15 level at the moment, looking to resume lower from here. Looking into the wave structure, the metal might have completed an impulse (5 waves) rally from $13.60 through $21.15 levels as depicted here. Please also note that the 5th wave here looks to be an extension, normally seen in metals. We can expect one last high above $21.15 level before turning lower and hence it is recommended to remain flat for now and prepare to go short on a rally. Immediate resistance is seen at $21.15 level, while support is at $19.50 level respectively. A push below $19.50 level would produce further confidence into the bearish setup.
Trading recommendations:
Remain flat for now. Initiate short positions near $21.15/20 levels.
Good luck!
