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09.05.202213:01 Forex Analysis & Reviews: Trading plan for Silver on May 09, 2022

Exchange Rates 09.05.2022 analysis

Technical outlook:

Silver prices dropped through fresh lows around the $21.75 mark on Monday. The metal has broken its previous swing low around $22.12 by a shallow margin and could be carving a complex corrective structure (expanded flat). Bulls might be still inclined to push prices higher towards the $24.50 mark to complete the correction.

Silver had earlier dropped between the $26.20 and $22.10 levels, carving a meaningful downswing. Ideally, a corrective wave should be unfolding towards the $24.40-60 zone as marked on the daily chart here. The metal might be unfolding as a more complex correction and could resume its rally towards $24.40 soon.

Alternatively, a consistent drop from the current levels towards $21.50 and beyond might indicate that bears would remain in control. High probability remains for a corrective rally from here before the down trend could resume further. Also, note that $24.50 is the Fibonacci 0.618 retracement of the recent downswing as discussed earlier, hence there is a higher probability.

Trading plan:

Potential rally through $24.50 against $21.00

Good luck!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Oscar Ton,
Analytical expert of InstaSpot
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