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Technical analysis of Silver for May 02, 2016

Technical outlook and chart setups:

Silver is seen to be consolidating between $17.70 and $17.90 levels today, after hitting fresh highs at $17.95 levels last week. As seen on the daily chart view, the metal is producing a doji candlestick pattern as well, indicating a potential bearish reversal. On the flip side, a major resistance is seen at $18.40/50 levels and bulls might want to take that out before turning lower. In either case, a top and reversal should be on cards from here on. It is hence recommended to remain flat for now and look for further confirmation before taking a short decision. Immediate resistance is seen at $18.40/50 levels, while support is at $16.75 levels respectively.

Trading recommendations:

Remain flat for now, looking to go short on a bearish reversal.

Good luck!

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