The silver price is easing along with other metals in the face of the little bounce by USD. Logical, normal.
The daily chart shows us what keeps it normal and what would turn it abnormal.
Silver (CFD) is testing the first support area, which it established by spiking above, spiking back below and in December re-taking the 50 and 200 day moving averages, which are converging. The cleanest way to remain normal is for silver to hold today’s low at that moving average junction.
Dialing it out to include the shaded base from which it began its rally silver would not be broken if it loses this support and drops toward the next support at 22.20. But it would not be normal to what to this point looks like a healthy rally with upside potential (target: 35). The caveat of course is that we are applying this logic in a time (holiday slack, Santa week) that is less trustworthy in its signalling than normal.
