Technical outlook:
Silver prices are searching for a higher high to be formed around $21.20 before completing the corrective drop that began since the $21.90 high earlier. If bulls manage to push through $22.00 from here, the trading instrument would be encouraged to further accelerate towards the $22.50-60 mark in the short term. Keep a watch on the $21.90 mark in the near term.
Silver prices are in a downtrend since the $30.06 mark. The metal is supposed to continue further towards $20.00 and $19.00 in the medium term. Before the next downswing resumes, the metal could be poised to produce a counter-trend rally up to the $24.00-20 area. Adding further is the Fibonacci 0.618 retracement of the recent downswing, which is seen through the $24.00 levels.
If Silver holds below $22.00 in the short term, the probability remains for a drop towards the $21.10-20 levels before the next leg resumes higher. Either way, the metal is poised for a corrective rally against $20.00 in the next few trading sessions. Traders might remain inclined to hold long positions for now.
Trading plan:
Potential rally through $24.00-20 against $20.00
Good luck!
