Market Technical Analysis for Silver

Tuesday's session saw a decline in silver prices as we remained around the 50-Day EMA. In the end, this market has been in a beautiful downturn for a while, and I fully expect that trend to continue in the future. Given the slowdown in the world economy and the industrial metal status of silver, it is difficult to envision a situation where you would want to acquire silver at this time. After all, the downward trend has persisted and we are still paying careful attention to that downtrend line. In addition, the $20 level above will provide a substantial challenge as well.

Looking at this chart, it is clear to me that the Friday hammer is important, and if we break below it, it is probable that the market will go toward the $18 level. It is possible that silver will drop at that point, maybe down to the $15 level, then the $12 level, since the $18 level is a big support level that has been quite strongly guarded. Rallies now will encounter a lot of resistance, but if we can break over the $20 level, we may go as high as the $21 level.

At this moment, the only thing I think you can depend on is a lot of volatility, so I believe the market is going to remain loud. As a result, you need exercise caution when sizing your positions and how aggressive you are overall.