Technical outlook:
Silver is seen to be preparing to stage a short-term counter trend rally towards $25.80-90 zone before finding resistance again. The metal has carved yet another lower high round $26.95 levels in March and reversed sharply lower through $23.95 levels recently. Bulls might be inclined to produce a corrective wave before bears are back in control.
Silver has reversed from its fifteen month old trend line resistance along side the Fibonacci 0.618 retracement of its recent downswing between $28.75 and $21.50 levels respectively. If the above structure holds well, prices should stay below $28.75 mark and continue dragging lower towards $21.00 and further as the next wave unfolds.
Silver is looking to carve a short term pullback rally towards $25.85 mark before finding resistance again. Bears would be inclined to remain in control thereafter and continue carving lower lows and lower highs going forward. The metal is heading below $10.00 over the next several weeks before it finds support again.
Trading plan:
Potential drop through $21.00 against $27.50
Good luck!
