With harrowing volatility across the commodities sector, silver has remained relatively stable inside the channel, and may be more inclined to adhere to a technical formation in the current environment than other markets reacting sharply to moves in other markets.

A move above the resistance at $38.50 would signal an upside breakout, which may initiate a speculative rally towards the previous high near $50 per ounce to chase gold's stellar performance. Conversely, a breach of the Channel Down chart pattern support at $37.00 would be exceedingly bearish given the overall strength in the metals sector, and open the door to a major downside correction. Meanwhile, range trading inside the channel with the current price action could allow for numerous short term trading entries.

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