Technical outlook and chart setups:
Silver dropped to Fibonacci 0.786 support of the entire rally between the levels of $13.70 and $14.20. It has bounced off since then, and is trading around $13.85 at the moment looking for an opportunity to extend its rally towards $14.30 and $14.50. Please note that the drop from $14.20 looks corrective and bulls should remain poised to take control back until prices stay above the level of $13.65. It is hence recommended to remain long and look for a chance to add further positions, with risk at $13.45. Immediate support is seen at $13.65, while resistance is seen at $14.20.
Remain long now with stop at $13.45, targets are at $14.50 and $15.00.
The material has been provided by InstaForex Company – www.instaforex.com