Technical outlook:
Siver prices retraced following the drop between $22.20 and $21.67 on Monday, raising through the $21.95 mark on Tuesday. The metal is nicely set up to drag lower from here towards $21.30 and $21.00 in the next few trading sessions. Bears will remain inclined to hold prices below the $22.20 mark to keep the near-term structure intact.
Silver is unfolding a counter-trend rally since the $20.45 lows, which is expected to terminate at around the $24.00-20 zone. The above zone is also close to the Fibonacci 0.618 retracement of its recent drop between $26.22 and $20.45 respectively. Also, it is near the past support-turned-resistance zone marked as a rectangle on the 4H chart here.
The high probability remains for bears to be back in control and drag prices lower through $20.45 and further from $24.00. In the near term, Silver might drop through sub $21.00 levels to find support before resuming its rally to the $24.00-20 mark. Traders might be preparing to add further longs around the $21.00-30 zone.
Trading plan:
Potential rally through $24.00-20 against $20.00
Good luck!
