December silver is trading 22.455. down 25 cents for the day. It is a surprise as to why silver is so weak in light of weakness in the US dollar contract. It’s important to note that we are getting close to seasonal lows. I would be cautious about initiating a new short position from this price point. However, the weekly chart below does show that the bear trend is in full force.
From a technical perspective, although silver is oversold, the market remains, and a breach below 22.00 would further erode the price. A close over 23.50 is needed to negate downside pressure. Give me a call or email me to discuss trading or hedging strategies from these levels.