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Technical analysis of Silver for January 07, 2016

Technical outlook and chart setups:

Silver seems to be stuck within the trading range $13.65 to $14.20 as depicted on the H4 chart. The metal needs to break above at least the $14.60 levels to ensure further highs. It is hence recommended to remain flat and watch for levels near the support line ($13.70/80) to initiate long positions or sell around the mark of $14.20. A clear push above the $14.30 levels would be a breakout and encourage a bullish setup. Immediate support is at the $13.90 levels followed by $13.75 and lower, while resistance is seen at $14.20. Only a break below the $13.65 levels would be bearish for the metal.

Trading recommendations:

Flat for now. Look to buy lower.

Good luck!

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