(symbol: $silver Periods: Weekly and scroll down to choose Range:
Notice that silver took about nine months to break through resistance at $20 in August 2010; prior to its run-up into April 2011. Often times when such a breakout occurs a commodity will re-test that resistance point to find support. Today's weakness in silver ( -$2.50 to $31.50 spot price) looks like we are heading for some sort of downside test.
Initial support looks like trend support around $25, then the 200 moving average around $21, then the $20 area mentioned above. In any event I expect the move down to be swift and breathtaking. A metals bull market always tries to scare the be-jesus out of the bulls before it resumes.
In my opinion anything below $30 is a bargain. If you see $25, back up the truck. If you see $20-$21, back up two trucks. Once this correction is over the move up (I think lasting 6 months to a year) will take us past the $48 nominal high of 1980 and last April. Once that happens I believe the next stop is $100.
Note: None of this bodes well for the euro or the dollar!