Red lines- bearish RSI divergence
Blue line- support trend line
Following our latest analysis on Silver we posted two days ago, Silver is showing more signs of weakness as price challenges the upward sloping support trend line. So far we only have warnings of a weakening up trend but no reversal confirmation. Yesterday Silver pulled back towards the support trend line. So far bulls have managed to defend the support trend line and respected it. Price remains above the trend line. As long as this is the case, bulls will remain in control of the trend. A break below $23.41 combined with the bearish RSI divergence, will provide a bearish signal and a downside target for Silver around $22.10-$21.30. The chances of this happening are high but there is no confirmation yet. At current levels we prefer to be neutral as we believe the upside potential is limited for Silver in the near term.
