Update on Silver

A few weeks ago it was noted that silver was losing momentum to the upside and looked vulnerable for a correction. Since then silver has continued to remain weak and the correction intensified today as a multi-week trading range was broken to the downside on high volume.

Silver has started falling at a faster rate than gold as indicated by the next chart. This is what you typically see during a precious metals correction as silver is a smaller and more volatile market than gold.

There are also three gaps on the SLV chart that could possibly be filled as the silver correction continues. The gap from 24.50-25 was technically already filled during the mid-November pullback in silver. The gap from 25.50-26.0 was never filled though as silver broke higher out of its mid-November correction.

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