Technical outlook:
Silver seems to have finally resumed its downtrend after finding resistance just above the $26.00 mark early this week. The metal was projected to rally through $25.85 mark before reversing lower again. Bears will now remain poised to hold prices below $26.30 to keep the immediate downside momentum intact.
Silver has been in a larger degree downtrend since $30.08 highs as labelled on the daily chart here. The metal has already completed a major downswing from $30.08 through $21.42 levels. The recent downswing between $28.75 and $21.42 has also been retraced by a corrective rally toward $26.95.
Also note that fibonacci 0.618 of the recent downswing has been tested along with the down trend line around $26.95. Ideally prices should now stay below the $26.95 high and continue printing lower lows and lower highs through $22.00 and below $21.00 mark going forward. Only a push above $26.95 will delay matters further.
Trading plan:
Potential drop through $22.00 and $21.00 against $28.75.
Good luck!
