A nice technical breakout was spotted by Autochartist in the silver market early in Tuesday's trading session. Following a prolonged move higher inside of a textbook Channel Up chart pattern, the price of the nearby silver futures turned lower to breach the trend line support and trigger the sell signal. As shown here on the 240-minute time frame, the Channel Up had provided support and resistance levels for the strong move upward from the $30.50 per ounce level up to the multiple swing highs near $34.00 per ounce. The orderly trade within this trend provided a strong score for the pattern across all measurements. Tuesday's breakout occurred in the midst of a rapid $1.00 per ounce drop in silver, resulting in a solid 9-bar momentum reading by Autochartist.
The price is anticipated to continue lower towards the minimum projected target of $32.16 per ounce. The lower end of the forecast suggests a continuation all the way to $30.99 per ounce is also possible. A reversal of the price back well above the initial breakout near $33.25 would be needed to negate the short-term bearish outlook and raise the possibility of this move acting as a false breakout from the channel.
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