SILVER market has moved south since May 2011. As a result of these drops value of this raw material fell from $49.00 in April 2011 down to $14.00 in December 2015 where there was a demand response in the vicinity of the upward trend line.
Growth did not last long. Looking at weekly chart we will notice that as a result of recent flash crash, the market is in bullish trend again.
On daily chart we notice that price of SILVER is in local resistance area and 50% of the Fibo correction from the entire previous downward movement. Rejection of this zone could open way to declines.
Optimally, it would be even more readable if the growth would deepen the upward rally lasting from last week so that SILVER would reach 16.19 and the downward trend line.
Rejection of this resistance could open the way to declines even to around 15.20 although we would have to overcome two more (blue) support levels on the way.
Looking at 30 minute chart, we will note that market has been moving in consolidation since Friday. Considering that today we have rejected its upper limit, in near future we would expect decline to its lower limit. Breaking down could negate the growth scenario and automatically open the way to further declines. Until this happens, we can still await further increases.
