Technical outlook:
Silver prices rose to about $21.45 during the Asian session on Monday after having tested the $20.60 level on Friday. The metal has produced a sharp 85-point rally in the last two trading sessions as bulls prepare to come back in control again. Ideally, prices should hold above the $20.60 mark to keep the bullish structure intact.
Silver prices are still unfolding a counter-trend rally, which began from the $20.45 low registered on May 12, 2022. The metal has managed to terminate the first and second sub-waves at around $22.44 and $20.60 respectively. If the suggested structure holds well, bulls are well on their way to terminating the last wave towards $24.00 going forward.
Silver prices are retracing the larger-degree downswing between $26.22 and $20.45 as seen on the daily chart. Prices are probably into the final wave higher and should reach up to $24.00-20 in the next few trading sessions. Traders might be prepared to hold long positions against $20.60 from here on.
Trading plan:
Potential rally through $24.00, against $20.00
Good luck!
