This is a purely technical analysis outlook of silver.
Previously we wrote about silver as potentially one of the best assets of the year:
#XAGUSD- Silver
The current price at 14.7 level is under MA200 which has stood as dominant resistance level since May.
We have RSI which crossed level 50, reiterates and retested it one more time. The trend reversal in Silver is what hopefully we`ll have.
The trend reversal in Silver
Inverted Head and Shoulder technical pattern, which is mostly used by traders as a good setup for long positions, is in the final phase of formation. If price breaks MA200 this pattern could be confirmed.
With proper risk management, you can use Fibonacci levels as a stop loss and take profit areas.
In this scenario, if we use Fibonacci levels as support and resistance lines our S/L should be -0.5% and T/P +2% from the current price.
This example is for a long position.
Source, MetaTrader 5
