Technical outlook and chart setups:
Silver also pushed higher towards $17.88 levels yesterday before pulling back sharply. The metal seems to have formed interim lows at $17.51 levels and it should be looking to rally towards higher levels ($18.30). As an alternate though, if prices drop below $17.30 level, the metal would be heading towards printing lower lows from here. The wave structure indicates that the metal should produce a counter trend rally this week and terminate around $18.50 level. A turn lower from there would push prices lower towards $16.50 level before resuming a rally, which is the fibonacci 0.618 support of an earlier rally between $13.60 and $21.10 levels respectively. It is recommended to remain flat for now and look for opportunities to short again on rallies; aggressive traders please remain long with risk at $17.00 level. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.00 level respectively.
Trading recommendations:
Aggressive traders may remain long, with stop at $17.00 and targeting $18.50 at least. Conservative trade setup would be to go short on rallies towards $18.50 level.
Good luck!
