Chart Book | Chart of the day: Silver's star is fading

A sharp rally for silver since last month has done nothing to reverse patterns on technical charts that suggest investors should not hold on to this precious metal. The US$21-per-ounce level has been a support for the past three weeks, but it has failed to provide the foundation for a fresh move higher. Indeed, this week got off to a bang on the downside. The Fibonacci resistance level at US$21.40 has held and the candlestick chart is now displaying a classic three-candle combination known as an "evening star". This suggests an interim high is in place and prices are likely to retreat back to the long-term moving averages.