Technical outlook:
Silver dropped through $22.10 on Monday as projected. The metal has also hit the Fibonacci 0.618 extension at $22.20, which is highlighted in red on the daily chart. Ideally, prices should pull back from here and push through the $34.40-50 zone before resuming lower again. The $22.10 interim low is expected to hold in the near term.
Silver has yet again carved a meaningful downswing between $26.22 and $22.10 levels. Bulls will now remain poised to retrace from the above drop and push through $24.40-25.00 levels before finding resistance. Also, note that $24.40 is close to the Fibonacci 0.618 retracement of the above downswing and the past support that turned into resistance (not highlighted).
Silver has been in a religious downtrend since $30.08 highs and is still expected to carve lower lows and lower highs until prices break below the $11.50 mark over the long term. At the moment, bulls are looking poised to prepare for a counter-trend rally towards $24.40. Ideally, prices should say below the $26.90 mark to keep the structure intact.
Trading plan:
Potential rally towards $24.50 against $22.00
Good luck!
