Technical outlook:
Silver has now rallied through $25.80 mark on Wednesday, precisely as projectedover the last week. The metal has now reached fibonacci 0.618 retracement of the recent downswing between $26.95 and sub $24.00 levels. Bears will now remain inclined to drag prices lower from here and keep it below $26.95 interim resistance.
Silver has been in a downtrend since Feb 2021 high registered around the $30.08 mark. The metal has remained in control of bears carving a larger degree downswing through $21.40 mark. Further, it has now completed its counter trend rally through $26.95 mark testing the one year old resistance trend line before turning lower again.
Also note that Silver has tested the Fibonacci 0.618 retracement of its recent down swing between $28.75 and $21.40 levels respectively. If the above structure holds well, prices would stay below $26.95 and broadly below the $28.75 level and continue lower towards $21.40 at least. Potential for downside remains through $18.00 and $16.00 levels respectively.
Trading plan:
Potential drop to $21.00 against $28.75
Good luck!
