Technical outlook:
Silver prices dropped through fresh lows around the $21.75 mark on Monday. The metal has broken its previous swing low around $22.12 by a shallow margin and could be carving a complex corrective structure (expanded flat). Bulls might be still inclined to push prices higher towards the $24.50 mark to complete the correction.
Silver had earlier dropped between the $26.20 and $22.10 levels, carving a meaningful downswing. Ideally, a corrective wave should be unfolding towards the $24.40-60 zone as marked on the daily chart here. The metal might be unfolding as a more complex correction and could resume its rally towards $24.40 soon.
Alternatively, a consistent drop from the current levels towards $21.50 and beyond might indicate that bears would remain in control. High probability remains for a corrective rally from here before the down trend could resume further. Also, note that $24.50 is the Fibonacci 0.618 retracement of the recent downswing as discussed earlier, hence there is a higher probability.
Trading plan:
Potential rally through $24.50 against $21.00
Good luck!
