Silver Price Analysis: Break of near term support opens 38.2% correction

• XAG/USD bears looking for a correction to the W-formation's neckline. 
• Bears can presume a weaker dollar, but the W-formation is a high probability chart pattern. 

The moves today in the commodity space have been over-exaggerated, at least according to ATRs.

The CRB index is up just 0.55% which represents a fairly lacklustre environment, but the metals are nevertheless bid, proximately owed to the US dollar. 

DXY has dropped by some 0.36% at the time of writing as markets get set for more US data this week, reversing some of what was looking to be the start of an unwind of an overly-subscribed short futures position.

Meanwhile, the silver has rallied to leave a W-formation on the daily chart where the neckline wicks meet a 38.2% Fibonacci confluence near $26.50. 

Daily chart, XAG/USD

30-min chart