FX.co ★ Silver: trading plan for June 13, 2022

Technical outlook:

Silver dropped through $21.27 lows on Friday before reversing sharply towards the $22.00 mark. The metal has moved in line with expectations through the $21.30 mark, carving a potential higher low. Bulls will now be inclined to hold prices above $21.27 and keep the short-term structure intact.

Silver carved a lower degree upswing between $21.27 and $22.00 last week. The metal is retracing the above rally and is seen to be trading around the $21.55 mark at this point in writing. Ideally, prices should resume higher from here and push towards $22.50 in the short term. Potential remains for push through the $24.00-20 zone going forward.

Silver prices are working on a larger degree downswing between $26.22 and $20.45 levels. The counter-trend rally seems to be into its last leg after having carved a higher low at the $21.27 mark. If the above structure holds well, bulls will be inclined to come back in control and push through $24.00. Note that $24.00 is the Fibonacci 0.618 retracement of the above downswing hence the potential resistance zone.

Trading plan:

Potential rally through $24.00-20 against $20.00

Good luck!