Silver is following buy-on-dips strategy. The 21.20/50 levels are in focus

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!