Breakthrough of the parallel channel
confirmed the bearish trend
of the silver
. The precious metal tried to reverse last two months but growing concern over China (demand) has pressured the price further. Still SLV
is trading within the long term triangle consolidation. If we see breakthrough of the triangle resistance line (another bearish
sign) levels of $22. 40
and $19 could be seen. If, however, markets reverse and risk appetite returns to investors mind a possible breakthrough above triangle resistance at $29 (which will eventually coincide with 200 MA) could drive the price 26% higher to $38.