Technical outlook and chart setups:
Silver dropped lower towards $15.60 level yesterday and remained shy by just a few cents off the support at $15.50 level. The metal might form a higher low now and is likely to be preparing to resume its uptrend soon. Please note that the fibonacci 0.786 support of the rally between sub $14.00 and $18.50 is also passing through the level of $15.46, where the metal could remain supported. Bulls are expected to regain control back till prices stay above $15.50 and subsequently $14.00 levels. Immediate support is seen at $15.40/50 levels, followed by $14.00 and lower while resistance is seen at $17.00 level, followed by $17.40/50, $18.40/50, and higher respectively.
Remain long for now, stop below $15.40/50, target is open.
The material has been provided by InstaForex Company – www.instaforex.com