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

Technical outlook and chart setups:

1. Silver is seen to be forming bottom around $19.70/80 levels as seen here and expected earlier. A morning star bullish reversal candlestick is potentially being produced on the 8H chart as seen here. A confirmation here would be extremely bullish for the metal.

2. Support is seen at $19.40, followed by $18.60 and lower while resistance is seen at $20.80, followed by $21.20 and higher respectively.

3. The structure indicates that Silver is preparing to reverse from current levels.

Trading recommendations:

Initiate long positions, stop at $19.40, target is open.

Good luck!