Technical outlook:
Silver prices dropped through the $21.43 lows on Wednesday before pulling back sharply. The metal is seen to be trading at around $22.09 at this point in writing and might have carved a higher low around the $21.43 mark.The high probability remains for a push through $24.00 as bulls remain poised to hold prices above $20.45.
Silver has bounced off the Fibonacci 0.50 retracement of the upswing between $20.45 and $22.44. The possibility still remains that the metal drops through $21.20 which is the 0.618 retracement, before resuming higher again. Either way, the metal is now expected to remain in control of bulls against $20.45.
Silver is developing a counter-trend rally towards the $24.00-20 zone before resuming lower again with its overall bearish trend. The Fibonacci 0.618 retracement of its recent larger degree downswing is seen through $24.00 as well. Hence, the probability remains high for a bearish reversal thereafter.
Trading plan:
Potential rally towards $24.00 against $20.00
Good luck!
