Daily analysis of Silver for January 16, 2014

Overview

As shown in today’s H4 chart, the metal is stabilizing between the Support level 20.00 and the Resistance level 20.20 after its failure to break the Support level again last week. Currently, we should wait for it to retest the Support level 20.00 again and close below in order to get the bearish move opportunity. In that case, we will get a good opportunity to sell below the Support level till testing the next Support level of 19.75. Therefore, we can consider our first target few pips above this Support level, but in case the price remains above the Support level 20.00, it will cancels the bearish move scenario.

Resistance and support levels:R3 (20.75), R2 (20.50), R1 (20.20), S1 (20.00), S2 (19.75), S3(19.50)

The material has been provided by InstaForex Company – www.instaforex.com

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