Technical outlook:
Silver prices dropped through fresh lows at around $20.58 intraday on Thursday, marginally below $20.60. The metal remains well supported at around the $20.45 mark and prices should ideally bounce back ahead of that. Bulls will be poised to come back in control from here and push through $24.00 in the next few trading sessions.
Silver prices are in a religious downtrend from the $30.08 highs printed in February 2021. The recent larger degree downswing is between $26.22 and $20.45 and bulls are carving a counter-trend rally before giving in to the next leg lower. Also, note that the Fibonacci 0.618 retracement of the above drop is also seen at around $24.00, a potential bearish reversal zone.
Silver is still holding its recent lower degree upswing between $20.45 and $22.44 intact. Bulls might remain poised to be back in control anytime soon and push towards $24.00. A break above $21.50, which is initial price resistance, will confirm that bulls are back in control and the counter-trend rally is into its last leg higher towards $24.00.
Trading plan:
Potential rally through $24.00 against $20.00
Good luck!
