Technical outlook:
Silver continues to remain a sell on rallies instrument until prices stay below $28.75 resistance. The metal has rallied through $25.30-40 zone as projected earlier and there is still some room left for a test of $25.85-90 zone before turning bearish. Bears will be inclined to hold prices below $26.95 levels to keep the immediate bearish view intact.
Silver is working on its lower degree downswing between $26.95 and $23.90 levels. The Fibonacci 0.618 retracement of above downswing is seen around $25.85 mark, which is not highlighted today. The metal is expected to face resistance and probability remans high for a bearish turn if prices manage to reach there.
Silver has been in a downtrend since $30.08 high registered in February 2021. The metal has carved a series of lower lows and lower highs since then and the recent larger degree downswing between $28.75 and $21.00 has also been retraced. Bears are now looking ready to resume lower again and drag below $21.00 levels going forward.
Trading plan:
Potential drop below $21.00 against $28.75
Good luck!
