How Bearish is Silver Now?

The very big-picture view of spot Silver shows the year-ago low at $13.62, which preserved the 12-year support line.

The rally from $13.62 peaked at $21.17 in July, 2016, while the ensuing give-back has amounted to 74% of the rally, and certainly is considered a very deep correction.

The juxtaposition of monthly RSI and monthly MACD with the falling price structure indicates that the decline, though very deep, is a correction of the Dec-July advance, rather than the initiation of a new downleg within the prior bear phase from April 2011 to Dec 2015.

Heavy support resides from $15.90 to $14.20, and is the zone from where Silver should stage a significant upside reversal if the Dec-July advance represents the first leg of an incomplete intermediate-term, recovery-rally period.