Technical outlook and chart setups:
Silver has rallied swiftly through $19.90 level yesterday as expected and discussed. The metal is seen to be trading at $19.78 level after printing highs at $19.87 level early hours today. Please note that the metal is stalling at fibonacci 0.786 resistance of the drop between $20.10 and $18.65 respectively. The wave structure indicates that Silver might be turning lower from here either to retrace or to push towards fresh lows. Please note that $19.50 level remain crucial for bulls to stay in control going ahead. A break lower would confirm that a meaningful top is in place already and the metal is heading lower. It is hence recommended to book profits on long positions taken earlier and aggressive traders might want to take short positions, with risk at $20.30 level. Immediate resistance is seen at $20.10 level, while support is at $19.50 level respectively.
Trading recommendations:
Book profits on long positions taken earlier. Aggressive trade setup is to turn short, stop at $20.35 level, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com