Technical outlook and chart setups:
Silver seems to have formed intermediary lows at $18.40 level yesterday and is seen to be trading at $18.75 level at this moment, after having touched almost $19.00 level today. Looking at the wave structure, there is no change and the metal still looks constructive for bulls to stage a rally from here. Please note that the metal has terminated a regular flat (a-b-c) as wave 4 consolidation and the last leg rally has resumed (wave 5). Furthermore, it still remains supported at fibonacci 0.50 levels of the entire rally between $15.70 and $21.13 levels respectively. If this count holds true, the metal should resume its last leg rally (wave 5) towards $20.80/21.00 levels going forward and a break above $19.00/10 levels would confirm the same. The metal is expected to remain in control of bulls till prices stay above $18.25 level. It is hence recommended to remain long now, with stop below $18.25 level. Immediate resistance is seen at $19.20 level, while support is at $18.25 level respectively.
Trading recommendations:
Remain long for now, stop below $18.25, targets are at $20.80 and above $21.13.
Good luck!
