Technical outlook:
Silver prices have yet again raised through $22.40 after reversing from $22.48 highs on Friday. Prices seem to have the potential to push through $22.65, which is the Fibonacci retracement level of 0.382 of earlier drop between $26.22 and $20.45 before a corrective movement to $21.20.
Silver prices had earlier bounced off the $21.40 level. This is the Fibonacci 0.50 retracement of its recent upswing between $20.45 and $22.44 within the corrective phase. Potential remains for a push through the $24.00-20 zone from here before reversing lower to the primary trend. Bear in mind that $24.00 is the Fibonacci 0.618 retracement of the above larger degree downswing.
Alternatively, silver could drop through $21.20-30 first before resuming its rally through $24.00. Silver remains well poised to push higher as bulls are determined to hold prices above the $20.45. Traders might be preparing to hold long positions and add further to $21.20-30.
Trading plan:
Potential rally through $24.00-20, against $20.00
Good luck!
