Technical outlook:
SSilver prices dropped to $21.40 during the European session on Wednesday. The metal has moved in line with our earlier projection and the potential still remains for a dip through $21.22 before resuming higher. Also, note that $21.22 is the Fibonacci 0.618 retracement of the recent upswing between $20.45 and $22.44.
Silver is progressing within its counter-trend rally since the $20.45 lows registered on May 13, 2022. The first leg terminated at around $22.44, while the second leg is expected to terminate at around the $21.20-40 zone. If the above is correct, the metal will resume higher towards $24.00 as the third leg begins to unfold.
Silver is working upon its recent larger degree downswing between $26.20 and $20.45. The metal is expected to push through the $24.00-20 zone, which is also the Fibonacci 0.618 retracement of the above downswing. Moreover, the past support-turned-resistance is also seen through the $24.00-20 zone. Hence, the probability remains high for a bearish turn.
Trading plan:
Potential rally through $24.00-20 against $20.00
Good luck!
