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Technical analysis of Silver for May 05, 2016

Technical outlook and chart setups:

Silver is seen to be trading at $17.45 levels at this moment after having bounced off the fibonacci 0.618 retracement levels as depicted here. The metal might be looking to continue higher towards $18.40/50 levels, which are a major resistance on the weekly chart (not seen here). The metal has dropped below the immediate line of support, but a push above $17.60 levels would bring it back above the same level. As an alternate though, a break below $16.80 levels would indicate that a meaningful top is in place at $18.00 levels. It is recommended to remain long now with risk at $16.80 levels. Immediate resistance is seen at $18.00 levels, while support is at $16.80 levels respectively.

Trading recommendations:

Remain long now, stop at $16.80, target is $18.40/50.

Good luck!

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