Technical outlook and chart setups:
Silver is seen to be trading at $19.60 levels for now, after having bottomed out around $19.30 levels yesterday. Please note that Silver produced a huge bullish engulfing candlestick pattern right after hitting lows at $19.30 levels, indicating a potential reversal ahead. The metal looks poised to rally from here towards at least $20.40/50 levels as depicted on the hourly chart here. Bulls are expected to remain in control in the short term, before the metal carves out a lower top ahead of $21.13 levels. Please also note that a meaningful top is already in place at $21.13 levels and that prices should remain well capped below the same level. The wave structure also indicates that a flat trend is underway and the metal is expected to turn lower from around $20.50/80 levels. It is recommended to remain flat for now and look to go short at higher levels; aggressive traders may remain long with risk below $19.25 levels. Immediate interim support is seen at $19.20 levels, while resistance is at $21.13 levels respectively.
Trading recommendations:
No change. Aggressive traders may remain long, stop below $19.25. Conservative traders look to go short at $20.50/80 levels.
Good luck!
