Technical analysis of Silver for May 19, 2016

Technical outlook and chart setups:
Silver dropped lower towards $16.70 levels yesterday before pulling back higher. The metal is seen to be trading at $16.81 levels at the moment, looking to rally further at least towards $17.60 levels before reversing lower. Please note that the probability still remains that the metal hits fresh highs at $18.40 levels, if prices stay above $16.60/70 levels. If not a new high, at least a countertrend rally is expected towards $17.60 levels going forward. It is hence recommended to remain cautiously bullish or remain flat for now looking to sell at higher levels. Immediate support is seen through $16.60 levels, while resistance is at $17.60 levels respectively.

Technical recommendations:
Remain flat for now or cautiously bullish with stop at $16.50 levels.

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