fell more than 3 percent Tuesday as a strong put pressure on commodity prices across the board. And according to one top technician, the selloff is just a foreshadow of what could be a major correction for the white metal.
"If you look at the price action in silver from the start of the year, we've been in a very tight range and haven't been able to break any meaningful topside level," said technical analyst MacNeil Curry on CNBC's "Futures Now." Silver is up roughly 8 percent on the year, but still hasn't managed to reclaim its year-to-date high of $18.50 hit in mid-January. The metal is also down more than 20 percent from its 52-week high of $21.63 hit in July 2014. Silver settled at $17.09 on Tuesday.
Curry notes that the inverse relationship between precious metals and the dollar should have given silver prices a more significant boost as the greenback has fallen 7 percent from its high.
"The fact that it hasn't been able to make any kind of headway despite a weakening buck in the last two months speaks volumes to the fact that the path of least resistance is still significantly lower here," said Curry, head of global technical strategy at Bank of America Merrill Lynch
According to Curry, in the next few months silver could drop to levels not seen in more than five years. "Over the course of the next few weeks I expect silver to stay in this $15 to $17 range," he said. "But once this thing starts to roll to the downside again we could see a 13 handle, which would be the first time we've seen that since 2009." That's a more than 20 percent decline from current levels.
A move past $13 could open the flood gates for even steeper declines, said Curry. "Long term we could get as low as $10."
Added Curry, "Keep this on your radar screen, this could be an excellent shorting opportunity if it plays out according to plan."