Technical outlook:
Silver dropped through $20.95 during the Asian session on Tuesday before finding some support. The metal is seen to be trading close to the $21.20 mark at this point in writing and is expected to resume its rally towards $24.00-20 levels. Bulls will remain inclined to hold prices above the $20.45 mark to keep the structure intact.
Silver prices are within a counter-trend rally since the $20.45 lows. The metal has carved two of its sub-waves around $22.44 and $20.96 respectively. If so, bulls will be poised to resume its third leg higher towards $24.00-20 levels keeping $20.45 intact. A push above $22.44 will accelerate its rally further.
Silver has been working on a larger degree downswing between $26.22 and $20.45 as seen on the 4H chart. The Fibonacci 0.618 retraceent of the above drop is seen passing through $24.00 levels hence potential resistance can be expected. Furthermore, the past support turned resistance zone is also around $24.00-20. Watch out for a bearish reversal thereafter.
Trading plan:
Potential rally through $24.00-12, against $20..00
Good luck!
