Silver: The Key Support at 20.50 Has Been Broken
Silver has broken its key support at 20.50, opening the way for a further decline. Supports can now be found at 20.10 (09/08/2013 low) and 19.17. The short-term technical structure is negative as long as prices remain below the resistance at 20.92 (14/11/2013 low). Another resistance lies at 21.30.
The failure to break the strong resistance area between 24.87 (26/04/2013 high) and 26.07 (26/09/2011 low), coupled with the subsequent decline, favour a medium-term phase of weakness. The break of the key support at 20.50 favours a move towards the next key support at 18.23 (28/06/2013 low).