Ashley notes that silver could crash as soon as the end of this week:
The metal has been forming a descending triangle over the past number of sessions. At its current trajectory, the pattern should reach completion within the next few days or, at the latest, the end of next week. Completion of a descending triangle typically leads to a breakout but the direction of such a breakout can be difficult to predict. In this case however, there is a sizable body of evidence suggesting that a downside breakout is the most probable outcome.
Ashley also says that if silver crosses below its 100-day moving average, selling pressure should increase significantly. These and other technical levels all appear strongly bearish, but the analyst warns of a slight chance that prices could jump in the near term:
Ultimately, with the FOMC meeting occurring this week, there remains a chance that a surprise rate change could upset any technical patterns. However, forecasts are presently in favour of the Federal Funds Rate remaining steady at the 0.50% mark. As a result of this, the technical breakout discussed above is relatively likely to remain undisrupted by the Federal Reserve in the coming days. This being said, stay abridged of the inevitable jawboning that will accompany the FOMC meeting as this could impact the metal heavily.
The iShares Silver Trust ETF (NYSE:SLV) rose $0.11 (+0.59%) to $18.65 per share in Tuesday afternoon trading. SLV has gained more than 41% year-to-date.