FX.co ★ Technical analysis of silver for January 08, 2015

Technical outlook and chart setups:

Silver might be looking to dip toward $16.00 and $15.80/80 levels again before rallying further up. It is therefore recommended to book profits on long positions taken earlier and wait for lower levels to enter long again. Immediate support is seen at $16.00 levels, followed by $15.90, $15.50 and lower while resistance is seen at $17.40/50, followed by $17.80/18.00 and higher respectively. Please note that the structure might still unfold as an inverted head and shoulder reversal, with $15.50 being carved out as the right shoulder. Bulls should remain in control till prices stay above $15.50 levels at least. $15.90 is seen as next support for now.

Trading recommendations:

Book profits on long positions taken earlier and remain flat for now.

Good luck!