Chaps,
Silver (spot) has found support at the 100 period simple moving average (100SMA) on the daily chart:
Price has formed a "hammer candle"; this is a potential reversal candle, and it's done so whilst in the oversold condition, meaning that it may bounce further. I'm NOT saying that the downtrend is now reversing (although it may do). The reason I don't think it will be a full-on reversal is because the US dollar index (DXY) has a bullish volatility squeeze which has just fired to the upside:
Notice also that the silver daily chart (first chart above) has a freshly fired bearish volatility squeeze.
On the 4 hour chart, the dollar is losing momentum after the last bullish squeeze on that particular timeframe fired. It's exhausted and now needs to catch its breath before the daily squeeze picks it up again:
So, basically, both trends (dollar up/silver down) remain intact, and there will likely be corrections in both and perhaps a period of consolidation.
If you wanted to play silver to the upside, you could enter during tomorrow's candle (after 11pm tonight I think) once price is above today's high (23.347). You can only do this because there is a hammer candle in the oversold condition.
So it would look something like this:
I'm no longer in a short spot silver position - I'm going to watch it closely, and will re-enter if there's further weakness, although not tomorrow morning as I have a Formula Renault trackday experience to look forward to!!