Technical outlook and chart setups:
Silver tested the level of $15.50 for the third time yesterday before bouncing back towards $15.80. The metal has been forming decreasing resistance making support wedge formation as depicted here, with $15.50 as support. A break below $15.50 would be extremely bearish and push the price lower towards at least $14.30, while a break above $16.00 would confirm a triple bottom formation at $15.50. It is hence recommended to keep long positions taken earlier with risk at $15.30, but initiate fresh long positions only after a confirmed break above $16.00/20. Immediate support is seen at $15.50 followed by $15.30 and lower. Resistance is seen at $16.00/20 followed by $17.30 and higher.
Remain long, stop is at $15.30, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com