There was a sharp pullback in silver during the past hour, with the price breaking below a well established Falling Wedge pattern. The Falling Wedge is usually a bullish pattern, with price action breaking upward more often than not. It is not game over yet for silver bulls though, since the sharp move could still prove to be a fakeout. A daily close back in the Falling Wedge, above $1470 (July Futures) will maintain the integrity of the pattern. A subsequent successful break upward out of the wedge, currently around $1509, would open up a potential target of $1600 and would see the precious metal move back above its 200 Day Moving Average (DMA).
Silver Futures Daily Chart
It is also worth nothing that the gold/silver ratio is testing decade long highs. The ratio adds further weight to the premise that silver has some considerable ground to make up relative to gold. With sentiment for gold remaining generally bullish, it seems likely the pair will move in unison, but the high ratio does suggest Silver could enjoy a stronger move at some point.
Gold/Silver Ratio Weekly Chart