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Technical analysis of Silver for February 04, 2016

Technical outlook and chart setups:

Silver is trading around the level of $14.65 after reaching highs around $14.79 yesterday. The metal is seen to be stalling around the Fibonacci 0.382 retracement of a drop between $16.35 and $13.63. The metal could be preparing for a resumption of its overall downtrend from the current levels. Please note that the trend-line resistance is seen around $15.25. It is recommended to initiate short positions with risk seen at $15.60. Immediate interim resistance is seen at the level of $14.80 while support is seen at $14.00.

Trading recommendations:

Remain short now with stop at $15.50, a target is open.

Good luck!

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