FX.co ★ Technical analysis of Silver for February 19, 2016

Technical outlook and chart setups:

Silver is trading at the levels of $15.38/39 at this moment after pulling back from $15.55/56 hit today. The metal was expected to complete its counter-trend rally through the levels of $15.60/70 since it is the Fibonacci 0.618 resistance level as depicted on the chart. Also note that the support turned resistance trend line is also passing through $15.60/70 and has potential to produce bearish reversal. The metal has reversed from Fibonacci 0.50 resistance for now, but potential still remains for a final push towards $15.60 and then a drop lower. It is hence recommended to remain 50% short now at the level of $15.60, with risk at $15.80. Immediate interim support is seen at $15.20 levels, while resistance is at $15.80.

Trading recommendations:

Remain short at $15.60 with stop at $15.80, a target is at $14.60.

Good luck!