FX.co ★ Technical analysis of Silver for January 21, 2015

Technical outlook and chart setups:

Silver has made yet another intraday high at $18.30 levels today before pulling back lower. The metal is seen trading at $18.10/15 levels for now and is seen to be forming a potential top formation on the H4 chart shown here. The metal has hit a lowest expected Fibonacci extension at $18.30 levels (not shown here), and the next potential high could be at $18.90 levels at least. It remains quite possible that Silver could retrace a bit lower before resuming rally towards $19.00 and higher levels. Immediate support is seen at $17.50/60 levels, followed by $17.20 (past resistance turned support), $16.50, $16.20 and lower while resistance is seen at $18.30 levels (interim) and higher respectively.

Trading recommendations:

Wait for a pullback lower to enter long again.

Good luck!