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Technical analysis of Silver for May 04, 2016

Technical outlook and chart setups:

Silver is trading lower at $17.25 levels at this moment, after printing highs at $18.00 levels earlier. Please note that the metal is testing its immediate support trend line (pushed lower now), and looking for support at the Fibonacci 0.618 retracement levels. A bullish turn from here could push the metal towards $18.40/50 levels, which is also a major weekly resistance. It is recommended to remain flat for now and look to initiate long positions only after a bullish reversal confirmation. On the flip side, a continued drop lower towards $16.80 levels would be encouraging to bearish setup going forward. Immediate support is seen at $16.80 levels, while resistance is at $18.00 levels respectively.

Trading recommendations:

Remain flat for now, initiate long positions on a bullish reversal.

Good luck!

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