Technical outlook and chart setups:
1. Silver is seen to have formed an engulfing bullish pattern around sub $19.00 levels, thus indicating a bullish reversal here. The metal is bouncing off from the fibonacci 0.786 support of the entire rally from $18.60 to the level of $21.60 as seen here. It is recommended to remain long and also look to initiate fresh positions at current levels; a push through the $19.90/$20.00 levels would confirm that bulls are in control.
2. Support is seen at $19.00 levels (interim), followed by $18.60 and lower, while resistance is seen at $19.90/$20.00 levels (interim), $21.20/30, $21.70 and higher respectively.
3. The structure indicates that Silver could be reversing from current levels and bulls are about to take back control. A push above $20.00, confirms.
Trading recommendations:
Remain long and look to initiate fresh positions, stop below $19.00 with target remaining open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
