Technical outlook and chart setups:
Silver had rallied through $20.05 level yesterday, beyond our expectations before pulling back. The metal is seen to be trading at $19.80 level after for now, and should be looking lower if $20.05 level holds well. Please note that the metal is stalling at fibonacci 0.786 resistance of the drop between $20.10 and $18.65 respectively. The wave structure indicates that Silver might be turning lower from here either to retrace or to push towards fresh lows. Please note that $19.70 and $19.50 levels remain crucial for bulls to stay in control going ahead. A break lower would confirm that a meaningful top is already in place and the metal is heading lower. It is hence recommended to remain short, with risk at $20.30 level. Immediate resistance is seen at $20.10 level, while support is at $19.70 level respectively.
Trading recommendations:
Aggressive trade setup is to turn short, stop is at $20.35 levels, a target is open.
Good luck!
