-INTRODUCTION- Silver has recently reached a new low at the 20.500 level. After reaching a new low, the price has formed a bearish flag channel, retraced, and retested the previous support level of 20.200. Therefore, we will be looking to enter sell positions after a confirmation of a short-term trend change.
-TRADING PLAN- The price was strongly rejected after it has retested the resistance level of 20.200. We can see in the chart that the price has formed a neckline area, which is at around the 21.650 level. Therefore, we will be watching for a breakout from this neckline area. After a breakout, we will set our sell orders at the neckline area to capture the retest. Our sell target is the previous low of 20.500.
Check out our previous retracement trading ideas below :)