Silver Will Likely Continue Falling

Silver has been moving to the upside for the past three weeks but this week it finally reached the resistance at 17.20, which coincides with the (MA)89 indicator on the weekly time-frame and bounced off that level. What is more, in the process of doing that the precious metal formed two very telling shooting star candlesticks – one on the four-hour time-frame and another on the daily time-frame, also at the (MA)89 indicator. These candlesticks, together with the considerable resistance at the 17.20 level, are a good signal for move to the downside that has already begun. Currently Silver is testing the support at 16.80 – 16.70, if it breaks out below that level it will likely continue falling towards the next support at 16.40.