Silver appears to have formed a bear flag in the daily timeframe, with a break under 22.07 (annual low) likely to trigger a further extension lower.
The recent rise is viewed as a rebound within an underlying downtrend. scope does exists for a retest of the old trading floor, in a similar manner to that seen in gold. However, should a rise to the 26.00 region be seen, this would be viewed as a reasonable selling zone.
The implied medium-term downside risk is 18.13. A support can be found at 19.48 (15/07/2008 high).
Daily Technical Report
