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Technical analysis of Silver for February 02, 2016

Technical outlook and chart setups:

Silver is trading around еру the level of $14.26 now looking for an opportunity to form a base around $14.00 before resuming its rally towards $15.00/20. The metal has been testing the resistance-turned-support trend line for the last couple of trading sessions. The metal is expected to drop lower towards at least $14.00, which is also Fibonacci 0.618 of the rally between $13.70 and $14.55. It is hence recommended to remain flat now and look for an opportunity to buy at lower levels. Immediate support is seen at $14.15 followed by $14.00, while resistance is seen at $14.50. Bears are expected to remain in control until prices stay below $14.60.

Trading recommendations:

Remain flat now, buy lower.

Good luck!

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