Technical outlook and chart setups:
There is no structural change since yesterday. Silver is seen to be trading at $19.57 levels for now, after having bottomed out around $19.30 levels earlier. Please make note that Silver produced a huge bullish engulfing candlestick pattern right after hitting lows at $19.30 levels, indicating a potential reversal ahead. Since then, the metal has been trading higher but needs to break above $19.75 levels to confirm further upside. Bulls are expected to remain in control for the short term, before the metal carves out a lower top ahead of $21.13 levels. The wave structure also indicates that a flat 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!
