05.10.201608:11 Forex Analysis & Reviews: Technical Analysis of Silver for October 05, 2016.

Long-term review

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Technical outlook and chart setups:

Silver has broken below the consolidation structure around $18.60 levels and is still expected to continue decline to $16.00 level at least. The wave structure also indicates that the metal is in its C wave correction within the 3 wave A-B-C drop that began from $21.10 levels earlier. Please note that the metal may produce intraday rallies towards $18.20/30 levels which should be considered as opportunities to sell again. The metal looks to be in its 3^rd wave within 5 waves into the C wave as depicted here, hence expect lower levels. It is recommended to remain short for now and look to add further at higher levels. Immediate resistance is seen at $20.10 levels, while support lies at $17.00 levels.

Trading recommendations:

Remain short for now, stop above $20.05, target is open.

Good luck!

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