Since late September, silver has been trending higher within an upward channel. During this time, price action has climbed from $ 21.41 to $ 24.83/oz (+16%). The local high was reached on October 22, after which the metal reverted to a correction.
On Tuesday, November 2, silver broke out of the ascending channel and then breached the $23.65 support level, retracing to the October 19 low. The target of the current decline is $ 22.33. The decline in silver is driven by strengthening of the dollar against major global currencies.
The precious metal’s retracement to the breached ascending channel would put an end to selling. And if prices exceed the key resistance zone of $24.83- $ 24.87, it would pave the road towards further gains up to $26/oz and imply a new wave of buying.