Technical outlook:
Silver prices rose to $22.38 intraday on Friday as the near-term potential remains towards $22.65. Please note that $22.65 is the Fibonacci 0.382 retracement of the entire drop between $26.22 and $20.45. A high probability remains for a bearish reaction if prices manage to reach there.
Silver has been unfolding a counter-trend rally since the $20.45 low registered on May 13, 2022. The first wave of the corrective phase is now expected to terminate close to the $22.65 mark. Prices are expected to pull back through the $21.20-50 zone to produce the second wave of the corrective phase. Bulls will be inclined to terminate the last wave through the $24.00-20 zone as projected on the daily chart.
Siver has already carved a meaningful bearish boundary between $26.20 and $20.45 as seen here. The metal is retracing now in the same fashion and prices are expected to reach the $24.00 mark, which is the Fibonacci 0.618 level of the drop. Also, the past support-turned-resistance is seen passing through the $24.00-10 zone, which is a potential reversal zone.
Trading plan:
Potential short-term drop through $21.50, then rally towards $24.00
Good luck!
