Silver crashes again, drops below 24 USD

07/12/2020

Monday brought selling to precious metals, and it looks like the recent corrective rally has ended as silver failed to break and settle above the stronger resistance of 24.20 USD.

Currently, the metal is testing the medium-term uptrend line, which is near 23.50 USD. That is the key short-term support, and if the price drops below it, the medium-term bearish trend could be renewed, targeting the November lows of 22 USD.

Breaking below the 22 USD level would confirm the bearish bias, targeting the psychological level of 20 USD in the next bearish wave. 

Alternatively, the resistance is now at last week's highs near 24.40 USD, and if silver manages to jump above this zone, further gains toward 25 USD seem likely.

We must say that the fundamental situation appears very bullish for metals, with both gold and silver usually rising during the winter months (December and January). Therefore, we expect gains over the next weeks, but so far, the chart is saying otherwise. 
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