The technical outlook from Friday still stands.

On Friday we stated that the overall trend is bullish above the March 16 low of $15.21 and traders may see a pullback to the $15.57 – $15.81 range as an opportunity to add to their bullish exposure. Today we are seeing signs of this scenario playing out.

The $15.57 – $15.81 range was derived using the Fibonacci retracement tool with the March 16 low of $15.21 and the March 18 high of $16.16 both used as reference points. A low in this area makes sense as the price is neutral in relation to the bullish trend in this zone and on Friday price was overbought in relation to its trend.

Last week’s high of $16.16 is the next resistance level in line and the potential target for bullish traders.

At this stage we suspect that price needs to break the March 16 low of $15.21 for traders to abandon their bullish view. On a break to this level, bearish traders may also step in, as a breach to the March 16 low of $15.21 may open the door for a decline to the March 3 low of $14.87.

Silver Prices | FXCM: XAG/USD