Technical outlook and chart setups:
Silver had dropped lower into $14.70 levels, just below its 50-day moving average, before pulling back higher again. Besides, please note that the drop has stalled at the fibonacci 0.618 support of the rally between $14.40 and $15.60 levels respectively. Furthermore, the backside of the resistance line is being tested for now. It is hence recommended to initiate long positions again with risk at $14.40 levels for now. Immediate support is seen at $14.70 levels (interim), followed by $14.40 and lower, while resistance is seen at $15.60 levels (interim), followed by $15.90, $16.40 and higher respectively.
Initiate long positions, stop at $14.40, a target $16.40.
The material has been provided by InstaForex Company – www.instaforex.com