Silver has broken above the 50-period moving average on the daily chart and the upside potential seems still kept for as much as $20 but the weekly chart continues to project the steep downtrend since 2011 that points to levels below $10.
The slight gains in gold and silver over the past few days with the greenback having gained sharply already have led to questions regarding how much the metals can rise and if there is any likelihood of a trend reversal.
For many market players, the US dollar doesn't look like an asset to stay bullish always for obvious reasons and the sharp declines in commodities overall might not hold them from not accumulating some precious metals, especially gold and silver at very low prices now.
If that keeps support the white metal in the coming days, $18 may be broken and it could rally towards $20. A break of that level seems difficult at this juncture because a recent trend, which is less steeper than the one since 2011 has its upside barrier coming there.
In case of a break there, silver will then aim at the $22-24 region, which needs to be passed in order to really challenge the big downtrend that started three years ago.
However, risks are more skewed to the downside as of now with inflation slowing globally. As long as the $20 resistance is held, the white metal will keep looking southward and target $12, once it gets through the recent lows.
Further lower, $10 is the next level which is likely to act as a psychological level before heading to more technically justifiable lows such as $8 or even lower.