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From : Commodities Daily Hotline: 31 October 2014
Chart of the day: Silver resumes downtrend


The Silver instrument spent much of October trading sideways after the previous decline became deeply oversold in September (note the very low level of the RSI back then).  The recovery, in response to that condition, did not get very far, with resistance developing near 18.  

On Thursday, the price fell under the early-October low, to renew the fall towards the February 2010 floor at 15.73.  The RSI has dipped into oversold territory again, but is no way near as low as last month, which only resulted in a small counter rally anyway.  Overall, the chart pattern is negative, and so a short trade is opened with the stop placed at 18.50 for now.


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