• Silver has been very negative during the Tuesday session, as we are looking at the markets breaking away from the negative correlation between rates and silver prices.

• This has been a major factor, but it looks to be breaking down.

  

Silver price has been hit hard during the trading session here on Tuesday as it has been a wild day to say the least. Ultimately, this is a market that continues to see a lot of questions asked about risk appetite, and what’s interesting is that we even had a situation where interest rates dropped and we have silver collapsing. That generally isn’t what happens most times, but with that being said, I think you have to look at this as a market that will continue to see the breaking of the hammer from the previous session, I think opens up the possibility of a drop down to the $60 level.

Technical Horizons and Bearish Momentum

If we did turn back around, then you could see the $70 level offer a bit of a ceiling right along with that 200-day EMA.

Quite frankly, this is a market that I think is going to continue to see a lot of trouble. If we were to somehow break down below $60, that is going to be horrible. If we can recapture $70 and we are going to do that in the next 24 hours most likely, then it would be a bullish sign.

I think you have to be very careful here, but clearly the bears have made their intentions known and certainly have grabbed hold of the markets. This remains a market that has a lot of negativities to it, and although I think it goes much higher eventually, the reality is that we are far from it.

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Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for traders who rely on technical setups to navigate volatile market conditions

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire