Technical outlook and chart setups:
Silver has taken stops out on remaining long positions held earlier, and has dropped to $14.40/50 levels as seen here. Recommendations are to remain flat for now, though indicators are showing divergence with respect to price movements. The metal has tested support of February 2010 (at $14.63 levels). The current fall could possibly be a thrust, before resuming rally. Aggressive trading strategy would be to initiate 50% long positions now with risk below $14.30. Resistance is seen at $15.85 levels, followed by $16.70, $17.75/80 and higher up, while interim support is at $14.50/60 levels. Bears seem to be in control at the moment and the metal needs to take out $16.70 resistance to confirm bullish reversal.
Trading recommendations:
Remain flat for now. Aggressive trade setup would be to initiate only 50%, with stop at $14.20.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
