Silver posts a bearish breakdown from a consolidation pattern


Last week's silver rally was impressive, and the metal rose circa 15%. However, this still looks like a bear market corrective rally, and the long-term trend points to further possible downside pressure.

On Monday, silver was seen 3% weaker during the London session, changing hands at around 14 USD. 

It looks like the price has broken down from the recent consolidation phase, which could lead to further losses over the next days. The intraday resistance is now seen at around 14.10 USD, and as long as silver trades below this level, the short-term outlook seems bearish.

Another resistance is at last week's highs of 14.65 USD, and if the metal jumps beyond this level, we could see a significant relief rally, targeting the psychological level of 15 USD.

On the downside, support might be located at around 13.50 USD, and if not held, a more significant decline toward 13.00 USD could occur. The primary level for bears is at previous cycle lows near 12 USD and if the price drops below this support, the long-term bearish trend would be confirmed.

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