Technical outlook and chart setups:
Silver has dropped a bit lower than expected and seems to have formed interim lows at $17.57 level as depicted here. Please note that the metal might be bouncing off the fibonacci 0.786 support of the recent rally as seen on the chart. The metal is seen to be trading at $17.63 level for now, looking to resume higher again. The metal seems to have formed interim lows at $17.51 level earlier and it should hold well if the bullish structure is to remain intact. As an alternative though, if prices drop below the trend line support, the metal could be heading to test $17.30 level at least. The wave structure indicates that the metal is poised to 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 rally. 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 $17.30 level. Immediate resistance is seen at $18.50/19.00 levels, while support is at $17.30 level respectively.
Trading recommendations:
Aggressive traders may remain long , with stop at $17.30 and targeting $18.50 at least. Conservative trade setup would be to go short on rallies towards $18.50 level.
Good luck!
