Technical outlook:
Silver daily chart view has been presented here for a bigger and clear wave picture. Silver had earlier dropped into 5 waves as labelled here between $17.70 to $16.10 levels, forming an impulse wave (1). Thereafter, silver had produced a 3 wave a-b-c counter trend rally that terminated into wave (2) of the same degree. Please also note that wave (2) almost tested the Fibonacci 0.786 resistance of wave (1). The metal is now into its wave (3) of early stages and a push below $16.10 levels would accelerate its drop further. Looking at the lower degree wave counts, the metal seem to have produced its wave 1 between $17.35 through $16.40 levels or is very close to producing. Please be prepared for a counter trend rally into wave 2 of the same degree before silver reverses lower again. Interim support is seen at $16.10 levels, while resistance is at $17.40 levels.
Trading plan:
Aggressive traders please prepare to go long, while conservative traders please remain flat for now and look to sell higher again at $17.00 levels.
Fundamental outlook:
Watch out for the German Consumer Price Index and US PCE Core to be out today between 08:00 AM to 08:30 AM EST.
Good luck!The material has been provided by InstaForex Company - www.instaforex.com
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