Monday's trading brought the market further into the middle of a large Channel Down chart pattern. Support for the channel was retested during last week's dramatic drop in both gold and silver, with the subsequent retest in silver proving to a be a shallow retracement by missing the support line.

This shows a possible rounding bottom with a potential rally back to resistance at $41.10 as the next swing for the market. A move above this level is required to trigger an upside breakout and another run at the highs. Meanwhile, range-bound movement inside the channel provides a fairly wide range for short term trading from both the long and short sides.

A drop below support at $40.00 per ounce would do some technical damage to the chart and encourage a larger downside move, with possibly longer term bearish implications.
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