The silver markets have been destroyed since last Friday, and it appears we have a long way to go. Keep in mind that Monday, July 4th, is a holiday in the United States, so liquidity may be somewhat limited. At this point, we have broken through enough support for me to believe that silver will eventually come apart and decline substantially. This makes sense, as silver is an industrial metal, and in the event of a global economic slowdown, many people will focus on silver’s lack of industrial use.
It appears to me from this chart that we might reach the $18 level rather rapidly, followed by the $16 level. Long-term, silver might go as low as $12, and as long as there are concerns about global economy and the Federal Reserve continues to tighten monetary policy, the silver markets will be subject to intense selling pressure. At this point, rallies should be sold, and I feel the market would need to break over $22.50 to signal that potentially we might move higher. However, you should also keep an eye on gold, as it is the catalyst for the decline, while silver would suffer a significant hit.
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I feel that trading from shorter-term charts, utilizing the weekly chart as a bit of a gauge and trading map, would likely serve you better. Signs of weariness on short-term charts will be further selling chances.