Technical outlook and chart setups:
Silver seems to have formed interim lows at $18.90 levels yesterday before pulling back higher. The metal is seen to be trading at $19.22 levels at the moment and is looking to push further towards $19.60/70 levels as depicted on the chart view presented here. Please note that the metal has dropped lower unfolding into 5 waves now (fresh lows at $18.90 levels) and hence a 3 waves counter trend rally can be expected. Please also note that Silver has reversed lower from the fibonacci 0.786 retracement of its earlier swing as discussed earlier. It is recommended to book partial profits on short taken earlier and wait for further opportunities to go short around $19.60 levels. Immediate resistance is seen at $20.10 levels, while support is at $18.65 levels respectively.
Trading recommendations:
Please book partial profits on shorts taken earlier. Stop at 20.50, target is open.
Good luck!
