Technical outlook and chart setups:
Silver tested the multi-month range lows at $18.30 yesterday before pulling back sharply, taking out intermediary resistance ($18.55) on the hourly chart. As seen in the 4H chart view presented here, the metal needs to clear at least $19.00 level, to confirm that bulls are back in control. After $19.00 is taken out, the metal could be considered as safe to buy on dips from there. The metal is trading around $18.50/55 for now and an engulfing bullish candlestick pattern can be seen produced yesterday. This is a signal of a potential trend reversal, which would be confirmed on a break of $19.00. Immediate support is at $18.00/20, while resistance is seen at $19.00 for now.
Trading recommendations:
Remain flat for now, look to enter longs, after break of $19.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
