Technical outlook and chart setups:
The metal rallied last week and took off the initial resistance at 22.50 as depicted here. This indicated that the bulls are in control, and it would rally further after a meaningful retracement. The metal is expected to retrace at the following convergence level:
1. Fibonacci 0.618 support at the 21.30/40 levels.
2. Back side of the downtrend line, which is support now.
3. A potential right shoulder of a possible head-and-shoulder reversal.
Trading recommendations:
Flat for now. Looking to buy lower.
Good luck!
