Group 1 - The recent price action indicates a rejection at resistance levels, with a swing low of $3,886 and a high of $4,006, forming a small bear flag pattern [1] - Gold has confirmed underlying selling pressure as it fell below the 20-day average, indicating a potential continuation of the bearish trend [2] - A breakdown below $3,915 will further confirm selling pressure and put the support level at $3,886 at risk [2] Group 2 - Initial downside targets are identified around $3,846 to $3,844, supported by a 50% retracement and the 50-day average [3] - If the support zone fails, the next target is the 61.8% Fibonacci retracement at $3,720 [3] - The bull trend that began in late August has not approached the 50-day average as support, which is expected to be tested soon [4] Group 3 - A bearish signal is confirmed with a daily close below the lower boundary line of the bear flag, indicating a preference for sellers [5] - The 50-day convergence zone is critical; holding this level maintains the trend, while a break risks the 61.8% retracement [5] - Today's bearish action persists until the price clears the high of $4,006 [5]

Core Viewpoint - December silver futures are presenting a selling opportunity due to anticipated price weakness [1] Technical Analysis - Recent price action for December silver futures has formed a bear flag pattern, indicating potential downward movement [2] - Increased daily price volatility at higher levels serves as a warning signal for a market top [2] - The moving average convergence divergence (MACD) indicator is in a bearish posture, with the blue MACD line below the red trigger line and both trending down [2] Fundamental Analysis - Safe-haven silver is under pressure from a heightened risk appetite in the marketplace, as evidenced by U.S. stock indexes reaching record highs amid easing U.S.-China trade tensions [3] Trading Strategy - A move in December CME micro silver futures below the support level of $46.82 would signal a selling opportunity, with a downside price objective of $40.00 or lower [4] - Technical resistance is identified at $50.00, where a protective buy stop should be placed just above [4]