Silver Price Prediction: Uptrend to likely extend to range high, RSI overbought

Source Fxstreet
  • Silver is rallying towards the ceiling of a broad range. 
  • The RSI is overbought, however, suggesting the risk of a pull back evolving. 

Silver (XAG/USD) is trading in an up leg towards the top of a broad range that stretches from the $26s to the $30s. 

Silver is bullish over the short-term and given it is a principle of technical analysis that “the trend is your friend” more upside is favored.  

Silver 4-hour Chart 

Silver will probably continue higher towards the range high at roughly $30.90 before encountering resistance from the ceiling. 

Silver is overbought, however, according to the Relative Strength Index (RSI) momentum indicator. This advises traders not to add to their long positions. If RSI moves back out of the overbought zone it will provide a sell signal and indicate a probable correction is evolving. 

Such a correction might find support either in the $29.60s (August 28 high) or, if deeper, at the $29.18 former mini-range high. 

Given the short-term trend is bullish, the correction is likely to eventually run out of steam, however, and the uptrend to resume, pushing Silver to new heights.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD struggles to extend recovery above 20-day EMAGold price (XAU/USD) is down 0.8% to near $4,140 during the European trading session on Monday. The precious metal faces selling pressure as the three-day rally hits a pause after failing to extend above $4,202.
Author  FXStreet
9 hours ago
Gold price (XAU/USD) is down 0.8% to near $4,140 during the European trading session on Monday. The precious metal faces selling pressure as the three-day rally hits a pause after failing to extend above $4,202.
placeholder
WTI Crude Oil Price Forecast: OPEC Production Increase Combined With Hormuz Strait Navigation May Drag Prices Down to $60.As of the Asian session on July 6, WTI ( USOIL) crude oil prices extended last Friday's rebound during intraday trading, peaking at $69.26 before consolidating around $68.60. From a techn
Author  TradingKey
9 hours ago
As of the Asian session on July 6, WTI ( USOIL) crude oil prices extended last Friday's rebound during intraday trading, peaking at $69.26 before consolidating around $68.60. From a techn
placeholder
Japanese Yen declines towards 162.00 vs USD as carry trades counter intervention risksThe USD/JPY pair builds on its goodish recovery from the 160.50-160.45 region, or over a two-week low touched on Friday, and gains strong follow-through traction for the second straight day on Monday.
Author  FXStreet
13 hours ago
The USD/JPY pair builds on its goodish recovery from the 160.50-160.45 region, or over a two-week low touched on Friday, and gains strong follow-through traction for the second straight day on Monday.
placeholder
TradingKey Daily Market Briefing: OPEC+ Continues Output Boost, Oil Prices Under Pressure, Gold Rebounds, Bitcoin Stands Above $63,000Tracking Market TrendsTradingKey - On July 6, pre-market Eastern Time, as the US stock market was closed last Friday for the Independence Day holiday, investors turned more to commodities, foreign exc
Author  TradingKey
18 hours ago
Tracking Market TrendsTradingKey - On July 6, pre-market Eastern Time, as the US stock market was closed last Friday for the Independence Day holiday, investors turned more to commodities, foreign exc
placeholder
Gold Price Forecast: US Non-Farm Payrolls Miss Expectations, Gold Surges Over $100, Can the Bull Run Continue?As of the Asian session on July 3, gold prices ( XAUUSD) extended yesterday's rally, climbing to an intraday high of $4,195.52. Looking at the charts, gold has gained over $100 in total s
Author  TradingKey
Jul 03, Fri
As of the Asian session on July 3, gold prices ( XAUUSD) extended yesterday's rally, climbing to an intraday high of $4,195.52. Looking at the charts, gold has gained over $100 in total s
Related Instrument
goTop
quote