Technical outlook:
Silver prices continued to drop on Thursday carving fresh lows around $20.60 levels. The metal is not too far from the lows and remains vulnerable for yet another drag lower through $20.30 levels as shown on the chart here. Bulls might be preparing to come back into control soon but need to hold prices above $20.60 mark near term.
Silver has already carved a meaningful downswing between $26.22 and $20.60 levels now. Ideally prices are expected to produce a counter trend rally anytime soon, pushing prices through $24.10 levels at least if not further. Immediate price resistance is now seen through $23.30, followed by $26.22, $26.95 and higher.
A break above $23.30 is now needed to release any near term downside pressure and resume its counter trend rally. Also note that the fbonacci 0.618 retracement of the above drop is seen passing through $24.07 levels, which should provide strong resistance. Bears would be inclined to come back in control thereafter.
Trading plan:
Potential rally towards $24.00-10 levels against $20.00
Good luck!
