Technical outlook and chart setups:
Silver is seen to be taking support from its multi month trend line as depicted here on the daily chart. The metal is seen to be trading at $17.63 levels for now, looking to stage a counter trend rally towards $18.50/19.00 levels. Importantly, it is quite possible that the metal may resume its rally from here. The wave structure also indicates that the silver is in its wave C drop within the 3 wave A-B-C that began from $21.10 levels earlier. If the metal reverses from $18.50/19.00 levels, then it would form base around $16.50/60 levels which is also the Fibonacci 0.618 support of the entire rally between $13.70 and $21.10 levels respectively. It is recommended to remain flat for now and look for opportunities to go short again on rallies. Immediate resistance is seen at $18.50/19.00 levels, while support lies at $17.00 levels.
Trading recommendations:
Remain flat for now. Aggressive traders may go long with stop at $17.00 and targeting $18.50 at least.
Good luck!
