Silver has formed its peak at the end of June 2016. Since then, it has been in a state of consolidation and the search for support points.
On the graph we can see the long-term formation of Descending Triangle. This is specific to its course. The market still creates smaller tops, which we can see on the downward trendline. Support remains firm, or the lower trendline is horizontal and fully respected. As the market still generates smaller tops, it signals a growing willingness of sellers to sell on smaller tops. It follows that they are gradually satisfied with a lower price. At the end of this triangle there may be only two scenarios. At the end, the upward trendline and the upward reflection may turn and bounce. But the opposite scenario is more likely, with the market shrinking support downwards.
This can be seen on the current visual display. The market shattered support at a symbolic level of $ 15.55. What does it mean? The silver reacts with a sharp downturn and is slowly getting to a minimum in December 2015. We can expect a response in the marked band as this zone caused a bull run in 2016.
When we look at the indicators the ones that look like so far bear. From the 3-day chart, we are above all the major EMAs, so we will stay in the downtrend for some time. RSI, however, is on the most oversold levels since November 2014. If there was a bounce, the market could shoot up to a support level close to 15-15.3 USD.
This analysis is of an educational purpose only. This is not investment advice. When trading, I recommend you to keep strict money and risk management.