Technical outlook:
Silver prices reversed sharply on Thursday after hitting $23.28 levels erasing all its gains after the FOMC meeting on Wednesday. Silver dropped through $22.10 in the early Asian session on Friday before finding some support. It is seen to be trading close to $22.40 at this point in writing and is expected to resume its rally from here.
Silver prices dropped from $30.08 highs registered in February 2021 to $21.40 lows printed in September 2021. Since then, the metal has started a corrective rally through the $26.90 mark, which is potential resistance now. Furthermore, prices reversed from the convergence point of the resistance trend line and the Fibonacci ratio as seen in the above chart.
Silver has carved a recent downswing between $26.20 and $22.10 respectively. The Fibonacci 0.618 retracement of the above boundary is seen passing through the $24.60 mark as highlighted here. A high probability remains fr a bearish reversal if prices manage to reach there as bears remain poised to remain in control thereafter.
Trading plan:
Potential rally through $24.60 aginst $22.00 then lower.
Good luck!
