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Silver Makes a New Low on the Year

Silver has been bearish with no meaningful consolidation since the 21.57 high in July. Today, as we wind down the week, silver has broken below the previous low on the year, and made a new one at 18.46. 

Silver (XAG/USD) Daily Chart 9/12

(click to enlarge)

The daily RSI is in oversold territory. While we should not be surprised by a bullish correction or consolidation, silver remains bearish until it breaks above the falling trendline from the 21.57 high. Where does this downside risk extend to?

When we look at the weekly chart, we can see that the 18.20 2013 low is the near-term target/supprot area. If that is broken, we would essentially have broken below a year-long descending triangle. 

Silver (XAG/USD) Weekly Chart

(click to enlarge)

If price falls below 18.20, silver opens up a common support area in 17-17.05. Below that the 2010 low at 14.63 should provide some support.

It should be noted that the weekly RSI held below 60 after it tagged 20 in 2013. That means the bearish momentum in the long-term is maintained. The moving averages are also in bearish alignment with price trading under them. These signs add to the case for a bearish outlook toward to 14.63 in the next few months or quarters.