Technical outlook:
Silver prices dropped through the $20.90 low on Tuesday before finding support again. The daily chart is unfolding the bullish Morning Star candlestick pattern as prices soar through the $21.50 mark at this point of writing. Bulls will remain poised to hold prices above the $20.90 mark to keep the near-term structure constructive.
Siver prices have carved two sub-waves within the corrective phase that had begun at the $20.45 lows. The first and second waves were terminated around the $22.44 and $20.90 levels respectively. If the above structure holds well, bulls will be poised to push through $24.00-20 as the last leg rally unfolds. A push through the level of $22.44 will accelerate the further movement.
Silver is working on its larger degree downswing between $26.22 and $20.45. The Fibonacci 0.618 retracement of the above drop is passing through the $24.00 level, along with the past support which turned into resistance. A high probability remains for bears to come back in control if prices manage to reach the $24.00-20 zone going forward.
Trading plan:
Potential rally through $24.00-20 levels, against $20.00
Good luck!
