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Should investors panic with the silver price down over 10% Friday?

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(Kitco News) - Comex silver futures prices got hammered to the tune of a more-than-10% decline on Friday, which did produce near-term technical damage, including soundly negating a price uptrend on the daily bar chart for March futures. Prices also closed at a technically bearish weekly low close Friday.

Friday’s mammoth daily losses in silver are not a rarity for the metal. An examination of the daily chart for March futures shows huge daily declines occurred in August, September and November. Those previous big losses certainly dented near-term bullish enthusiasm, but prices quickly recovered and even just recently started a near-term uptrend on the daily chart.

Looking at the monthly continuation chart for nearby Comex silver futures, seen here, shows no longer-term chart damage inflicted. In fact, in 2020 prices saw a bullish upside “breakout” from a choppy and sideways trading range dating back to 2015 on the monthly chart. The recent pause in the upside breakout on the monthly chart is not at all bearish and the bulls continue to hold the longer-term technical advantage.

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