13.05.201411:18 Forex Analysis & Reviews: Technical analysis of Silver for May 13, 2014

Long-term review

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Technical outlook and chart setups:

1. Silver has produced an engulfing bullish candlestick chart pattern right at the trend line support around sub $19.00 levels as seen here. At the moment, the metal is consolidating gains and is expected to rally further to take out $20.00/40 levels from here on. This event would confirm that bulls are here to stay. Recommendations for now is to book some profits and remain long, risk is below $18.40/50.

2. Support is seen at $18.90, followed by $18.75, $18.40.50 and lower, while resistance is seen at $19.90/20.00, followed by $21.70, $22.30 and higher respectively.

3. The structure indicates that Silver needs to break ahead of $20.00 and $20.40/50 levels to confirm further bullish setup. A drop below $18.90 would be extremely bearish for the metal though.

Trading recommendations:

Take some profits and remain long, stop below $18.40/50, target is open.

Good luck!

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