Silver Produces Engulfing Bearish On Daily Charts, Short-term Trendline Breaks
Technical Outlook and Chart Setups:
Looking into the wave structure, the rally from sub 26.00 level to 35.20/30 levels has produced three waves till now. The wave 4 retracement, looks to be already completed at 30.70 level (the 0.5 Fibonacci support) or it may extend below till 29.90/30 levels (the 0.618 Fibonacci support). Immediate support is at 32.90 levels followed by 32.00 and 30.60 respectively, while resistance begins from 34.50 followed by 35.20/40. Please note a break below 32.90 has potential to trigger further downside and a break of 32.00 levels will trigger a major selloff.
Sell on a break of 32.00. Target is at 29.00. Or buy above 34.50 and target is open.
The material has been provided by Instaforex Company – instaforex.com