Yellow rectangles- price tops and RSI overbought conditions
Silver is in a bullish trend making higher highs and higher lows. Price is approaching the $25 price level as it continues trading inside the blue upward sloping channel. So far there is no sign of a reversal, however bulls need to be cautious as a pull back is justified at current levels. In the Daily chart the RSI has reached similar levels to the last time Silver made an important top around $26.90. The RSI hasn’t been so overbought since February 2022. My view is that the upside potential is limited and traders should be ready for at least a pull back. Support is $24.35. A break below this level would be a reversal signal.
The material has been provided by InstaForex Company – www.instaforex.com
Blue lines- bullish channel
Yellow rectangles- price tops and RSI overbought conditions
Silver is in a bullish trend making higher highs and higher lows. Price is approaching the $25 price level as it continues trading inside the blue upward sloping channel. So far there is no sign of a reversal, however bulls need to be cautious as a pull back is justified at current levels. In the Daily chart the RSI has reached similar levels to the last time Silver made an important top around $26.90. The RSI hasn’t been so overbought since February 2022. My view is that the upside potential is limited and traders should be ready for at least a pull back. Support is $24.35. A break below this level would be a reversal signal.
The material has been provided by InstaForex Company – www.instaforex.com
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