Silver trades below uptrend line, further weakness likely


It has not been a positive week so far for silver and the metal is down again on Tuesday, trading at around 24.20 USD during the US session.

The long picture is starting to look bearish again. Silver plunged in late September, then consolidated for most of October, while creating higher highs and higher lows - a sign of a short-term uptrend. 

However, the price fell below the bullish trend line, which cancelled the short-term bullish trend, until the price gets back above this trendline. 

Therefore, it is starting to look like the medium-term bearish trend will prevail as silver is now breaking down from the recent consolidation pattern. That view would be confirmed if the price drops below the lows of 24.10 USD, with the next target near 23.50 USD. If these lows are not held, silver could decline to 23 USD very quickly.

The resistance now seems to be near the broken bullish trend line at 24.80 USD and afterward at around 25.00, where the short-term bearish trend line is located. 

Silver needs to clear these levels in order for bulls to regain control in the market. 
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