Silver Corrects Gains, Might Fall To $35.0 an Ounce

After going through an extraordinary bullish trend, silver prices have begun to show downward corrections as of today, dropping almost 100 pips.
Silver peaked today at an all-time record high of $36.72, however, once American equity markets have opened, a bearish correction took place, pushing silver to as low as the $35.87 level.

• The chart below is the spot-silver 2-hour chart by ForexYard.
• Silver has climbed rather steadily over the past couple of weeks, gaining from $31.65 an ounce to the $36.72 level.
• Nevertheless, it is clear to see that the bullish channel has been breached today after the commodity fell below $36.30 an ounce.
• In addition, a bearish cross of the Slow Stochastic is signaling that the bearish correction has more steam in it.
• The RSI has recently fell below the 70-line - which usually indicates a trend shift. This indicates that the bearish correction may be a relatively long-lasting move.
• The MACD looks about to complete a bearish cross as well. If the bearish cross will indeed take place, it will probably validate that the bearish move has more room to go.
• The next support levels are located at the $35.85, $35.50 and $35.00 levels.
• The next resistance levels are at: $36.30, $36.75 and $37.00.

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