FX.co ★ Technical analysis of Silver for January 06, 2014

Technical outlook and chart setups:

1. Silver rallied back above the $20.00 level after printing lows at $18.70/80 levels last week. It is recommended to remain flat at the moment.

2. Immediate resistance is at $20.50 level followed by $21.50 (the fibonacci 0.618), $23.00 and higher, while support is at $18.70/80 followed by $18.00, respectively.

3. The structure reveals that a break of $20.50 and subsequently $21.00 would shift focus higher towards a possible trend reversal. Till $20.50 is intact, prices should move lower towards $17.50/60.

Trade recommendations:

Remain flat for now. Aggressive traders may go short with stop at $21.00.

Good luck!