Silver under pressure

Silver is near a three month low and remains under pressure, according to Cornelius Luca, Global Chief Technical Analyst at Thomson Reuters.

Luca says silver has broken below its trendline (from January 2014) and is trading below its 21-day exponential moving average, but is still not oversold. In addition, fast stochastics are slightly bearish and MACD is bearish. As such, Luca suggests shorting silver (Slc1 or XAG=) while it remains below its 21-day exponential moving average.

Initial support is at 15.461 with further support at 15.26 and 14.42. Initial resistance is at 16.1027 with further resistance at 17.1437.

See chart.