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Silver buy on dips. 20.00 seems to be strong bottom formation

Posted at May 30, 2013 Categories : Forex Analysis |

Technical outlook and chart setups:

There is no change from what was discussed yesterday. The metal has been trading sideways by taking support at the Fibonacci 0.382 levels of recent rally from 20.00 to 23.00. Long positions taken yesterday can be held but please note that the metal can fall down towards the 0.618 support at 21.30/40 levels before rallying further up towards 25.00 and higher. Immediate resistance is seen at 23.30, followed by 24.50 and 27.00 while support is at 21.20/40, followed by 20.00 levels. It looks like the metal has formed a strong base around 20.00 and the likelihood of a fresh low should be ruled out at the moment. The metal remains good buy on dips for now.

Trading recommendations:

Hold long positions (50%), buy further on dips. Stop is at 20.50. Target is open.

Good luck!

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