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Technical analysis of Silver for May 06, 2016

Technical outlook and chart setups:

Silver turned lower from $17.60 levels yesterday after facing the back side of the trendline, which is resistance now. The metal had earlier bounced off fibonacci 0.618 support around $17.20 levels and should be considered bullish till prices stay above the same level. On the other hand, a drop below $17.20 and subsequently $16.80 levels would indicate that a meaningful top is in place at $18.00 levels and the medium-term trend would be lower from here. It is recommended to remain long with risk at $16.80 levels for now. Immediate support is seen at $16.80 levels, while resistance is at $18.00 levels respectively. Please note that a little sideways movement here would be in favor of bulls.

Trading recommendations:

Remain long for now, stop at $16.80, target is $18.40

Good luck!

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