Silver Provides Bearish Signals
November 17th, 2009 Posted in Technical Analysis
In yesterday’s trading, the Silver experienced much bullishness, as it now stands at $18.15. However; it seems that this trend may be coming to an end. I will illustrate below that the Silver may very well be heading for a reversal. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.
• The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and MACD.
• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 2: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 3: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
Silver 4-Hour Chart
