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12.05.2014 11:00 AM
Technical analysis of Silver for May 12, 2014

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Technical outlook and chart analysis:

1. Silver bounces off as expected and discussed earlier from sub $19.00 levels again. Bulls should remain in control for now and the metal should be targeting $20.40 and higher as shown here. Recommendations are to remain long, also look to buy more on dips from here on. $18.90 levels should hold for now.

2. Support is at $18.90, followed by $18.70 and lower, while resistance is at $19.90/$20.00 levels, followed by $20.40, $21.70, $22.30 and higher respectively.

3. The structure indicates that Silver has probably formed bottom around $18.90/19.00 levels, and is ready to rally towards fresh intermediary highs as seen here. Buying on dips should be the favored trading strategy.

Trading recommendations:

Remain long, risk at $18.30/50, target open.

Good luck!

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