FxWirePro: Silver remains open to further decline

While Silver’s precious metal counterpart gold has been declining steadily and has broken into new yearly low this week, Silver has steadily found support around $14.8 area.

• Higher demand for silver in China amid a lower level of inventory is keeping the price supported.
• However, our calculations suggest that silver bulls are likely to give up amid selling pressure in precious metal.

Trade idea:

• Our calculations suggest that silver is likely to fall to the next bearish target of $14.6 per troy ounce, and gradually move towards the next target around $14.2 per troy ounce.
• The real test for the bulls lies around $13.9-14 area, a break of which would see a sharp decline with silver moving towards $12.4 per troy ounce.