Technical outlook:
Silver has raised through the $22.10 mark on the intraday chart on Friday before pulling back. The metal is seen to be trading around $21.80 at this point of writing and might have found intraday support. Bulls might be preparing to hold the price above the $21.50 mark and attempt another rally towards the $22.30 mark in the near term.
Silver prices have already reached the minimum requirement to confirm a much deeper rally ahead. Bulls have been successful in taking out initial resistance seen around the $21.95-22.00 zone on lower time frames (1 hour). It is quite possible for bears to take control from here and produce a meaningful corrective drop towards the $21.00-20 zone.
On a larger time frame, Silver is poised to produce a counter-trend rally towards the $24.00-20 levels, which is the Fibonacci 0.618 retracement of the entire drop between $26.22 and $20.45. Traders might be prepared to hold long positions for a while against the $20.45 mark with a potential target towards $24.00-20.
Trading plan:
Potential rally through $24.20 against $20.00 and then lower.
Good luck!
