All those record spikes across global indices are luring investors away from commodities. We see some early signs of this migration. Gold and Silver, that act as safe haven assets in uncertain markets, picked up upward momentum in initial months of 2017. So did Oil (thanks to the implementation of production cut guidelines by OPEC and non-OPEC nations, albeit some outliers). Added to that is the recent rise in U.S. Dollar which has a big influence on the price-action of commodities, given it is the base currency commodities are priced in and hence the buy - hold potential of investors.
Let's take a closer look at Silver Daily chart. The white metal saw $20 plus highs last June and post that has been gliding within a descending wedge formation. Some brakes were seen at intermediate resistance zones that allowed the metal to firm, before next downward move. Since the new year though, it was mostly a traversal north. Straight two months of gains, despite reaching long term resistance slope around $18 price area. An extended BAT pattern completed since. The price further consolidated for few day, and was anticipated to move higher up until $19, as it had already broken the resistance slope. RSI / volumes appears exhausted.
Silver suffered sudden loss yesterday and dropped to current $17.5 level. As mentioned earlier, it was probably driven by the move of money to more profitable USD and stocks. Technically speaking, this drop was long anticipated and is slightly delayed.
This is analogous of other commodities too. Will this slide continue further? If it does then there will be some resistance and consolidation in $17 - $17.5 zone (indicated by price-action behavior as in the rectangle) on Silver daily chart. On the contrary, this downward movement could be a temporary dip and a reversal could be soon on the cards.