- Silver has moved to new 2 1/2 month lows today (since January 20th), and below the 100 day MA $31.99.
- The low today came in at $30.99
- The March 22nd low came in at $31.08
- The price has moved back above the $31.08 and could be a sign that the pair has the potential to correct some of the sharp move lower over the last 24 hours of trading.
Looking at the 5 hour chart the sharp decline is evident. The price has not had much in the way of a correction today. In fact over the last 12 hours, there has only been one up bar.
However, the move to new lows last hour left a long tail on the candle. This suggests some profit taking and the possibility of a correction/consolidation (with buyers now likely on dips with tight stops below the lows).
The move below and close below the 100 day MA is bearish for silver today. However, the failure on the move to new lows, may be enough to solicit profit taking on dips. The topside target on a correction should find sellers against the 38.2%-50% of the move down (see 5 minute chart). That level comes in at the $31.53-70 level. A correction toward this level should be sold with the expectation of further downside momentum.