On the daily chart of Silver, we see that since July last year there is a downward trend, which also can be described by edge of the channel. Now, after quite large correction price is not only at the top edge but above all in clear zone of resistance that is defined by the extremes of the previous price. It seems that, in accordance with the prevailing trend, ongoing consolidation should be completed by breaking down.

Trading now on the declines, however, is risky, because the price in terms of H4 climbs up. You can see here a bullish channel, which is still respected, although recent increases were clearly “flattened”. You can treat it as an initial signal of slowing growth. It is possible that soon comes to break the bottom of the channel. The key, however, is the system of higher and higher lows. The two latter form local support at 16,70-75. Going below this level should result in a bearish scenario from the upper Daily interval.

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