Technical outlook:
Silver has reversed sharply since sub $26.20 mark around mid-April as projected and has almost met the Fibonacci targets $22.90 and $22.20 levels respectively. The metal is trading around $22.50 at this point in writing and could hit $22.20-30 mark before pulling back higher again. Bulls are looking poised to remain in control for now.
Silver has been in a meticulous downtrend since the $30.08 highs as shown on the daily chart here. The metal has dropped through $21.50 lows completing a trade cycle, Thereafter, it rallied through the $26.90 level, which is fibonacci 0.619 retracement of its recent downswing between $28.75 and $21.50 levels.
Silver continues to follow the trend line and fibonacci ratios as marked on the chart and is close to hitting another target around $22.20. If the above structure unfolds accordingly, be prepared for a counter-trend rally to push through $24.30 levels going forward. Traders might be preparing to initiate fresh long positions soon.
Trading plan:
Preparing for a potential rally through $24.30 soon.
Good luck!
