Technical outlook:
Silver prices continued to slide on Tuesday, printing the $21.74 low at the time of writing. Early this week, the metal took out resistance at around $22.10 as bulls successfully entered the market to confirm further upside. The metal might be on its way to retrace lower towards the $21.00-20 zone before resuming higher again.
Silver has already carved a larger degree recent downswing between $26.22 and $20.45. It has been in a religious downtrend since the $30.08 highs registered in February 2021. The recent boundary is being worked upon as bulls prepare to terminate the counter-trend rally through the $24.00-20 mark going forward.
Silver prices could face strong resistance around $24.00 since it is the past support-turned-resistance zone, along with the Fibonacci 0.618 retracement of the above downswing passing through. The probability remains high for bears to be back in control as traders prepare to initiate fresh short positions thereafter.
Trading plan:
Potential short-term rally towards $24.00 then lower again.
Good luck!
