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Technical analysis of Silver for May 09, 2016

Technical outlook and chart setups:

Silver has been trading sideways for 2 consecutive trading sessions between $17.25 and $17.45 levels respectively. The metal had reversed from $18.00 levels earlier and is trading at $17.40 levels for now. The structure indicates that bulls might be determined to push prices higher towards $18.40/50 levels, which is a major resistance (not seen here). On the flip side, a drop towards $16.80 levels would confirm that a meaningful top is in place. It is recommended to remain long for now with risk at $16.70 levels. Immediate support is seen at $16.70/80 levels, while resistance is found at $18.00 levels respectively.

Trading recommendations:

Remain long, stop at $16.70/80, target is $18.40.

Good luck!

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