Silver: The Declining Channel Has Held Thus Far
Silver has thus far failed to break over the resistance area defined by 20.52 and its declining channel (around 20.55). The technical structure from recent trading days favours further short-term weakness. Hourly supports can be found at 19.94 (15/01/2014 low) and 19.35. Another resistance is given by the 200 day moving average (around 21.43).
In the longer term, the failure to break the key resistance area between 24.87 (26/04/2013 high) and 26.07 (26/09/2011 low) coupled with an underlying bearish trend call for lower prices. The break of the key support at 20.50 favours a move towards the next key support at 18.23 (28/06/2013 low).