Silver Technical Analysis for October 07, 2016.

Technical outlook and chart setups:

Silver looks to have formed interim lows at $17.00 level before pulling back higher. The metal is seen to be trading at $17.34 level for now, looking to stage a counter trend rally towards $19.00 level. 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 level earlier. The metal is expected to form base around $16.50/60 levels which 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 $19.60 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!

The material has been provided by InstaForex Company - www.instaforex.com

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