FX.co ★ Silver Technical Analysis for October 06, 2016.

Technical outlook and chart setups:

Silver has broken below the consolidation structure around $18.60 levels and is still expected to continue further at least into mid $16.00 level as discussed earlier and also depicted here. The wave structure also indicates that the metal is into its wave C correction within the 3 wave A-B-C drop that began from $21.10 levels earlier. Please also note that the metal could produce intraday rallies towards $18.20/30 levels which should be considered as opportunities to sell again. The metal looks to be in its 3rd wave within 5 waves into the C wave as depicted here, hence expect lower levels towards at least $16.70. Please note that $16.68 is also the fibonacci 0.618 support of the entire rally between $13.70 and $21.10 levels respectively. It is recommended to book profits on short positions taken earlier and wait for opportunities to sell again. Immediate resistance is seen at $20.10 level, while support is at $17.00 level respectively.

Trading recommendations:

Please take profits on short positions taken earlier and remain flat for now.

Good luck!