Traders finally ganged up on the previous multi-year low of US$ 17.35 level this week and violently took it out, electing major stops below the 17.09 area - a downside price objective that was previously a retracement extension level originating from the 16 September 2014 high of 18.86. Silver was driven as low as the 16.85 area on Tuesday and yesterday's Daily Low was just above that area.
Let's first see why this level was important on our Daily Chart below.
Let's next see how and why stops were piled up below this level and how sharp the move lower was to 16.85 on this 15-minute chart below. We see the market first tried to move below 17.09, was thwarted, and then found enough selling pressure to elect the stops below en route to 16.85.
The previous multi-year Low of 17.35 has been toppish today.
Downside price objectives are 16.28, 15.66, and 12.75.
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