Chart of the day: Silver support slips

Silver has retested important support at US$14.66 per ounce. Following the break below the bottom of the triangle that has dominated this year, and with the 50 and 200-day moving averages bearing down on prices for a whole year, we believe it is just a matter of time before support crumbles. Measured targets from the height of the triangle suggest this secular bear market will continue on to US$13.96, and then US$12.75, and probably US$10.75. A drop below the psychological level of US$10, which is also some of the lowest levels of the past decade, is unlikely to be maintained but might be seen briefly if the rush away from precious metals accelerates.