Blue rectangle- key short-term support
Violet lines- Fibonacci retracement levels
Silver is trading around $24.60. Price is forming lower highs and has challenged for the third time the key horizontal support of $24.50. Price action has shown how important the support level of $24.50 is. The horizontal support has been tested so far three times and price is currently bouncing. Support at the 23.6% Fibonacci retracement is important. A break below this level will be a new bearish signal and will most probably push price lower towards the 38% Fibonacci retracement level at $23.66. This is our primary scenario. Resistance is at $25.16.
