Technical outlook and chart setups:
Silver looks to have formed the right shoulder of a potential inverted head and shoulder reversal as discussed earlier, around the $15.50/60 mark. The metal should be preparing to rally towards $17.40/50 levels at least. As seen here, the right shoulder has formed around the fibonacci support of 0.618, of the rally from $14.50 to $17.30. Immediate support is at $15.50 (interim), followed by $14.50 and lower while resistance is seen at $17.30, followed by $17.50, $17.80/18.00 and higher respectively. Bulls are expected to remain in control till prices stay above $14.50.
Remain long for now, stop below $14.50, the target is open.
The material has been provided by InstaForex Company – www.instaforex.com