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Rich Ilczyszyn: Silver Probably Slipping to $40

Although losses weren’t quite as extreme as last year’s Flash Crash, the recent down move in silver seems to be generating comparasions.

Over a period of 24 hours silver declined as much as 10% before paring some of its losses.

What should you make of it?

For insights we turned to Rich Ilczyszyn of Lind-Waldock. In a live interview on CNBC's Fast Money, he said silver could have another 10% to the downside.

”I’m telling investors to buy June 40-puts, which is where I think silver is going to go,” he says.

He calls the recent move lower a key reversal, which is a bearish sign. And he thinks the chart is making a double top, which is also a negative.

That’s not to say Ilczyszyn isn’t bullish, anymore – he is, long term. "Long-term I’d use the dip as a buying opportunity I'd add to my positions at $40," he says.

But in the short term he thinks the path of least resistance is lower.






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