Simple Moving Average (SMA) 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Market and Price Action (patterns, candlesticks)
- Now the 1H RSI shows the bullish momentum being tested, as it tests the 40 level. Price action is also testing an important pivot at 36.50 . We have another important one at 35.70 that can keep the market bullish in the short-term, in context of a sideways market overall.
- A break below 35.70 suggests a bearish bias, but also in the context of a ranging market (until a break below the 32.30 low).
- The 4H chart shows the 33 and 32.30 lows as a rangesupport containing the bears now, so if these open up, further correction to silver's long-term rally can be anticipated. Also note that the 36.50 and 35.70 pivots represent the middle of the range , and a return to this area suggests the market is not sure what to do, but will try to figure it out in the equlibrium of recent price action.
- Currently, if the market can refrain from breaking below 35.70 , we have another chance at the 39.50 to 40 area. A break above the 40 level can then open up bulls towards the highs near 49.50 .
Fan Yang CMT
Chief Technical Strategist
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.