Technical outlook:
Silver prices dropped below $21.00 mark on Thursday and registered fresh swing low around the $21.75 mark before finding support again. The metal is quickly pulling back and seen to be trading around $21.15 levels at the time of writing. Bulls are looking poised to hold prices above $21.75 and push through the $22.00 initial resistance.
Silver seems to have carved a meaningful downswing between $26.22 and $20.75 with the new low carved. Ideally, prices would pullback through $24.30-50 mark, before finding resistance again. Also note that the Fibonacci 0.618 retracement of the above drop is seen passing close to $24.10-20. A high probability remains for a bearish turn thereafter.
Silver is facing immediate short term resistance at $22.00 and a break higher will confirm a meaningful bottom in place. Also note that 4H RSI is showing a bullish divergence as prices dropped to the $20.75 mark. This is potential reversal indication as traders prepare to initiate fresh long positions going forward.
Trading plan:
Potential rally through $24.30-50, against $20.00
Good luck!
