Below is the weekly chart of silver. It is similar to the one Trades posted about a week or so ago. It is still trying to figure out which way to go. On the daily chart it is working out what appears to be a wedge or triangle. It is somewhat visable here on the weekly. To me the rally so far appears to have tired legs. It is also finding support at the 32 level.

After the 1980 wipeout down to 10 the market bounced to 25 before falling again to single digits. If it does breakdown I would expect some support at the 25 level because of this and the weekly chart pattern. Notice the breakout around 20 last Sept/Oct. That should provide some support around 20. Hal has also pointed this out as a possible target on a further breakdown.

In red are some fib retracement levels of the run up between the 9.09 low and the 48.60 high on the weekly chart. In purple is and 80% wipeout of the total price of silver at the high of 48.60. That is my understanding of what happened in 1980. It would for all practical purposes retrace the entire move up from the 9.09 level of the end of 2008. I just don’t see it happening, but on a break below 32.50 can we not see it hit 20 which was the breakout point? Looks like it is currently working on that wedge, so I would not expect it to go sideways to much longer before showing its hand. Actually it looks like the last two bars on the weekly chart are inside bars.