Silver dropped sharply last week and closed below 30 psychological level at 29.80. The development is inline with the case that the fall fro 35.455 isn't finished yet. Further decline would likely be seen to 29.24 support first. Break will confirm this bearish case and would target a test on 26.105 low. On the upside, break of 30.745 is needed to signal short term bottoming. Or outlook will stay cautiously bearish for now.
In the bigger picture, as long as 37.58 resistance holds, price actions from 26.105 are viewed as a consolidation pattern only. And that means, the down trend from 49.82 high isn't over yet and a new low below 26.105 is in favor. Though, break of 37.58 will dampen this bearish case and could bring stronger rise back to 49.82 high.
In the long term picture, the main question remains on whether 49.82 is a medium term or long term top. With 61.8% retracement of 8.4 to 49.82 at 24.22 intact, price actions from 49.82 could eventually turn out to be a consolidation only. And a break of 37.58 resistance will significantly increase the odds of a new high above 49.82.
Comex Silver Continuous Contract 4 Hours Chart
Comex Silver Continuous Contract Daily Chart
Comex Silver Continuous Contract Weekly Chart
Comex Silver Continuous Contract Monthly Chart
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