With the weekly Bollinger band converging, we cannot ignore that silver could potentially start to carve out a bottom. A rally in the white metal has often been the catalyst and confirmation for the rest of the other siblings to go higher. Given its current state, we cannot ignore that silver could retest 15.60 levels and even lower at 15.45. We will not rule out that Silver can continue this weakness despite a bullish diverging RSI indicator (see chart). Take note that price action remains stuck within the range that is drawn within the orange channel line. We remain bearish as the long term trend continues to point to lower prices. Unless price broke and close above 18.00 then lower prices are expected.
1st Scenario
Support found at 15.60 and a reversal to retest the higher at the 50 WMA. Range trading continues
2nd Scenario
Support at 15.40 fails and RSI broke below the rising trend line. Only a solid red candle bar to suggest that sellers are in control - to take prices below 15.00 and retest the purple support line at 14.50.
1st Scenario
Support found at 15.60 and a reversal to retest the higher at the 50 WMA. Range trading continues
2nd Scenario
Support at 15.40 fails and RSI broke below the rising trend line. Only a solid red candle bar to suggest that sellers are in control - to take prices below 15.00 and retest the purple support line at 14.50.