Silver prices have just crashed to levels we have not seen since December, and there is a heightened risk we could see even lower prices in the weeks ahead. Driving silver prices lower are a strong dollar and higher US government bond yields. 

 

Was it evitable? 

Already on Thursday last week, silver prices tried to trade lower, but the bears’ attack was swiftly crushed.  Today, it looks like they have succeeded in triggering a large descending triangle pattern with a target of 22.64.

 

The descending triangle was in the making since January 28. On that day, the price bounced from 24.81, and it also bounced from the same level on March 5. A downward sloping trend line goes via the February 25 and March 18 highs. The horizontal level and the trend line form the triangle, and it says that as long as the price does not trade firmly back into the triangle pattern, the price could reach 22.64. I think the March 26 high of 25.27 is probably as high as the price can trade before the pattern is void.

 

If we look at the short-term levels, traders will probably hold off with shorting at current levels. They will probably wait for a correction to at least 24.53 before turning bearish once again.