Technical outlook:
Silver prices dropped through the $21-40-50 zone early on Monday before pulling back higher again. The metal is seen to be trading close to $21.70 at this point in writing and is expected to resume towards $24.00 soon. Bulls need to hold prices above $20.40 to keep the structure constructive over the near term.
Silver is unfolding a potential counter-trend rally since printing lows around the $20.45 mark earlier. The first leg terminated at around $22.44, followed by a corrective decline through $20.90, to terminate the second leg. Since then, bulls are on their way towards the $24.00-20 zone as the third leg is progressing.
Silver has been working on a larger degree downswing between $26.22 and $20.45 already. The Fibonacci 0.618 retracement of the above drop is also seen passing through $24.00. Furthermore, the past support-turned-resistance zone is seen at $24.20 as depicted on the daily chart. A high probability remains for a turn lower if prices manage to reach the $24.00-20 zone.
Trading plan:
Potential rally through $24.00 against $20.00
Good luck!
