FX.co ★ Silver Downtrend Confirmed

Silver (XAG/USD) has rebounded in the short term, has retested the black downtrend line, and now it goes down again. Technically, the outlook is bearish, XAG/USD could decline, as long it stays under the downtrend line.

Practically, when the price retests a downtrend line, it should decrease again and resume its swing down. I've told you in my previous analysis that it could develop a larger corrective phase, downside movement, after escaping from the up channel's body.

The rebound, growth, could have been only a temporary one before the price starts dropping again.

• XAG/USD Trading Conclusion

Silver could drop way deeper if it stays under the uptrend and downtrend lines. The near-term downside target is seen at the 22.775 level. A larger drop could be confirmed if the price drops under the previous lower low, peak low.