Technical outlook and chart setups:
Silver has dropped lower towards $17.40/50 as seen here. The metal could continue moving lower until the levels of $16.94 at least and subsequently towards $16.50/70 before resuming its rally. It is recommended to hold short positions for now with risk around $18.00. The metal should produce a meaningful retracement before resuming its rally. Immediate support is seen at $16.94 followed by $16.70. $16.40/50, and lower, while resistance is seen at $18.40/50 and higher respectively. Bears could remain in control until prices stay below $17.70.
Remain short for now, stop at $18.05, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com