FX.co ★ Silver Extends Correction!

Silver has escaped from an up channel signaling a potential deeper drop. As you can see on the H4 chart, XAG/USD is trading far below two downtrend lines, so the outlook is bearish, the price could decline further.

It has recovered a little within the up channel, but its failure to stay inside of this pattern announces a broader corrective phase. The next downside target is seen at the next peak low, lower low could really validate a move towards fresh new lows.

• Silver Trading Conclusion

The rate has retested the broken uptrend line confirming the breakdown and a further decline. Still, only a drop under the 22.786 lower low indicates a larger downside movement.