Technical outlook and chart setups:
Silver has corrected lower towards the fibonacci 0.786 support of the entire rally between $18.30/40 and $20.20 levels as depicted here. The metal is seen to be trading at $19.17 level at this moment, looking to correct lower towards $18.80/90 levels before resuming rally. Please also note that the metal has bounced off its interim trend line support and bulls are expected to remain in control till prices stay on the north side of the trend line. Looking at the wave structure, the metal seems to have completed its retracement lower and should typically resume its rally higher. On the flip side, a consistent break below the trend line support would indicate a change in its structure. It is recommended to go long again with risk at $18.00 level. Immediate resistance is seen at $19.70 level, while support is at $18.30 level respectively.
Trading recommendations:
Remain long now, stop is at $18.00, a target is open.
Good luck!
