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Technical analysis of Silver for January 12, 2016

Technical outlook and chart setups:

Silver is seen to be again dropping towards its consolidation support levels around $13.70/75 levels as seen here on the H4 chart. The metal is expected to bounce from the support levels here and push towards $14.20/30 levels in the sessions to come. It has been bouncing off the support and resistance levels since quite a few trading sessions now, and needs to break the cone consolidation to determine its next leg. It is recommended to initiate long positions since the metal is trading at support around $13.70/75. The metal is now expected to reach the resistance zone around $14.20/30 levels in the coming trading sessions.

Trading recommendations:

Initiate long positions now, stop is at $13.65, target is open.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com