Technical outlook:
Silver prices rallied through the $22.44 highs on Friday before pulling back. The metal has almost tested its last week's high by pushing through $22.28 and has now eased off around $22.05. The metal is carving a tweezer top candlestick pattern on the daily chart, indicating a potential trend reversal ahead. Watch out for the $21.20 lows in the near term.
Silver is unfolding a corrective rally from the $20.46 low, which was registered on May 13. The first leg of the proposed corrective phase looks complete between $20.45 and $22.44. If correct, the second leg should resume soon towards $21.20, which is the Fibonacci 0.618 retracement of the above rally. Bulls will be inclined to push through $24.00 thereafter.
Silver has been in a religious downtrend since the $30.08 high registered in February 2021. The recent larger degree downswing is between $26.22 and $20.45, which is now being worked upon. Prices are expected to reach the Fibonacci 0.618 retracement of the above drop seen around the $24.00-10 area. Bears would be back in control thereafter.
Trading plan:
Potential rally towards $24.00-10 against $20.00
Good luck!
