Technical outlook:
Silver prices have dropped through the $21.35 lows during the Asian session on Wednesday. The metal pushed close to $22.00 on Tuesday before finding resistance and pulling back sharply. Prices might produce a bullish reversal from here since they have hit potential intraday support at around $21.40 as projected on the chart here.
Silver is proceeding well into its last leg rally towards $24.00 within the corrective phase that began since printing the $20.45 lows earlier. The first and second waves of the corrective phase terminated at around $22.44 and $20.90 respectively. If the above structure holds well, the metal is already underway towards $24.00-20 as the third wave is progressing against $20.90.
Silver has further carved a lower degree upswing between $20.90 and $21.95 which has been now retraced to the Fibonacci 0.618 levels at around $21.35. If the above holds well, prices would stay above $20.90 and push through the $24.00-20 levels going forward. Traders might be preparing to add fresh long positions around current levels ($21.40).
Trading plan:
Potential rally through $24.00-20 against $20.00
Good luck!
