Technical outlook:
SSilver prices continued to rally through the $21.86 high on Monday, inching close to initial resistance around $21.96. The metal has eased off a bit and is seen to be trading around the $21.70 mark at this point in writing. Bulls have managed to carve a potential Morning Star candlestick pattern on the daily chart since the $21.45 low over the last week.
Silver has been in a religious downtrend after printing the $30.08 high in February 2021. The metal has carved down trade cycles until the recent low carved around the $20.45 mark. Immediate resistance is seen around $26.22, followed by $26.90, $28.75 and higher; while the intermediate low is now in place at around $20.45.
Silver is retracing after the recent downswing between $26.22 and $20.45 and is on its way towards $24.00 at least. Also, note that $24.00 is close to the Fibonacci 0.618 retracement of the above downswing, hence resistance is expected to be strong there. Furthermore, past support-turned-resistance will also enable a trend reversal from the $24.00-30 area.
Trading plan:
Potential rally towards $24.00-30 against $20.00
Good luck!
