Silver has been a bearish market for some time and this should be no shock to anyone that has been paying attention to the precious commodity.
That bearish market is unlikely to stop in the short term with the USD strengthening so strongly on the market, and as commodities take a dive across the board. But for now silver has held up nicely under pressure. That pressure is now looking to ramp up again and I feel and the chart below explains why.
Currently silver is stuck in a descending triangle on the hourly chart, and this looks likely to continue in the short term at least. Generally a descending triangle means a breakout lower in the technical world, this does not always come true, but given the strong bearish nature of silver it certainly looks likely.
When targeting entry points, the current trend line is likely the best candidate, as it currently acts as dynamic resistance for silver.
Support is likely to be found on the line I have drawn which shows the two recent touches. There is a lot of liquidity at this point, so it’s a viable take profit point for the short term traders looking to jump in and out.
Overall, for a breakout lower I would look to target the 17.25 mark, which will confirm a breakout lower and may happen in the coming days as the bearish trend continues in silver.
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