Technical outlook and chart setups:
Silver is trying to drop lower in 3 wave correction from current levels around $16.00 as depicted here. The metal is expected to drop through at least $15.30, but a push below the support level of $14.40 would be extremely bearish. An aggressive trade setup could be to initiate 50% short positions now, with risk at $16.50. Immediate support is seen at $15.00 followed by $14.40, $14.00, and lower, while resistance is seen at $16.40/50 followed by $17.50/60 and higher. The more conservative way to trade would be to wait for a drop.
Remain flat or go short with stop at $16.50, a target is at $15.30.
The material has been provided by InstaForex Company – www.instaforex.com