Technical outlook and chart setups:
Silver dropped below the level of $14.10 overnight, but is managed to recover trading above $14.25 at the moment. The metal is forming a potential morning star candlestick pattern on the H4 chart that still indicates a potential counter trend rally can take place soon. The metal should break through the resistance line and get through $14.50 to confirm the bullish setup. We prefer to stay long on trades taken earlier with risk at $14.00, but refrain from buying fresh positions until the trend line breaks. Immediate support is found at $14.10 (interim), while resistance is seen at $14.50.
Trading recommendations:
Remain long with stop at $14.00. A target is at $15.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com