Silver is currently testing the intermediate support of its medium term bullish channel at 31.60 suggesting a rebound. However, a break of these levels will release strong potential and entail a decline to the lower limit of this one to 31.00.
Technical indicators provide sell-signals but are approaching the oversell zone supporting the assumptions of a rebound. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market indicates a bullish opportunity at the levels of 31.60 with the 1st objective of 32.20, then 32.40. A break through 31.40 will alter this scenario.
