Silver Bottoming or Starting New Downleg?

Last Friday, spot Silver broke 3-week support at $22.15, and thereafter plunged an additional 3.5% to a low of $21.37, which so far, appears to be attracting some buying interest.

If the price structure can manage to claw its way back above last Friday's breakdown level at $22.15 on a closing basis, we will get our initial indication that iShares Silver Trust (SLV) is in the process of carving out a secondary low within a larger developing bottom off of the May 19 major low at $20.07.

Conversely, inability of spot Silver to climb above $22.15 on a sustained basis will leave the bearish scenario intact for yet another loop down that again tests, or possibly breaks, $21.37 on the way to a full-fledged challenge of $20.00.