Technical outlook:
Silver is preparing to resume its counter trend rally through $25.85-90 mark, before finding resistance again. The metal is seen to be trading around $24.50 levels at this point in writing after dropping to $24.10 on late Wednesday post FOMC. Bulls are looking inclined to hold prices above the $24.00 mark to keep bullish momentum intact near term.
Silver has been in a larger degree downtrend since $30.08 mark and has carved a series of lower lows and lower highs thereafter. The recent downswing is seen between $28.75 and $21.50 levels, which has been retraced up to fibonacci 0.618 levels around $26.90 levels as seen on the chart here.
Ideally, Silver prices should stay below $26.95 mark and continue lower towards $21.50 and further as the downswing would unfold. Bears are waiting for the short term counter trend rally to get complete around $25.85 before coming back in control. Also note that prices continue to follow its one year old trend line resistance.
Trading plan:
Potentil short term rally through $25.85 before turning lower again.
Good luck!
