FX.co ★ Technical analysis of Silver for January 09, 2014

Technical outlook and chart setups:

1. Silver has broken out the short-term resistance line in the past few trading sessions. Also it is seen to be back testing the line, which is support now at the $19.00/20.00 levels. It is recommended to initiate 50% long positions at the current level of $19.65; risk remains at $18.60.

2. Immediate resistance is at $20.50, while support is at the $19.00/20 level, followed by $18.75, $18.00, and lower.

3. The structure reveals that till prices are above $18.75, bulls would want to take out the 20.50 resistance and extend further towards $21.50.

Trading recommendations:

Initiate 50% long positions, set stop at $18.60, target is at $21.50.

Good luck!