Silver remains in a bullish trend making higher highs and higher lows. So far Silver price has respected all key support levels every time price pulled back. Silver is now trading around $24.07. The recent pull back tested the lower channel boundary it was in but did not break below it. Silver has the potential to provide a new higher high above $24.11. The RSI continues to provide lower highs. The bearish divergence by the RSI is a warning that should not be ignored. The bearish divergence suggests that the up trend is weakening. This is not a reversal signal. If however the bearish divergence is combined with a break below the channel boundary support at $23.51, then we will have a reversal signal.
The material has been provided by InstaForex Company – www.instaforex.com
Blue lines- bullish channel
Red line- bearish RSI divergence
Silver remains in a bullish trend making higher highs and higher lows. So far Silver price has respected all key support levels every time price pulled back. Silver is now trading around $24.07. The recent pull back tested the lower channel boundary it was in but did not break below it. Silver has the potential to provide a new higher high above $24.11. The RSI continues to provide lower highs. The bearish divergence by the RSI is a warning that should not be ignored. The bearish divergence suggests that the up trend is weakening. This is not a reversal signal. If however the bearish divergence is combined with a break below the channel boundary support at $23.51, then we will have a reversal signal.
The material has been provided by InstaForex Company – www.instaforex.com
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