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Silver Staying in a Falling Channel

Silver continues to trade in a falling channel. After a consolidation this past week, price held below 20.80 and fell sharply today to new lows on the week. This price action shows respect to the moving average cluster in the 4H chart. The RSI also held below 60 showing maintenance of the bearish momentum. As we continue the structure of lower highs and lower lows, there is downside risk below 20.30, perhaps to 20.00.

Silver 4H Chart 7/31

When you look at the daily chart, you can see the importance of 20.00. Below 20.00, price would clear all of the 200- ,100- and 50-day simple moving averages. The 19.75-20.00 area is a key resistance in April - June price action and could turn into support. The RSI is near 40. 

Silver Daily Chart 7/31

So, if price holds above the 19.75-20 area, and the RSI holds above 40, the next bullish swing will have upside toward the July highs around 21.50, and the 2014-highs around 22.00.