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
Forex Today: US Dollar stabilizes ahead of next batch of US dataHere is what you need to know on Thursday, August 13:
Author  FXStreet
10 hours ago
Here is what you need to know on Thursday, August 13:
placeholder
WTI declines below $82.50 as oil inventories rise far more than expectedWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.45 during the early Asian trading hours on Thursday. WTI declines on a larger-than-expected build in US crude oil inventories. Traders will closely monitor the developments surrounding US-Iran talks for fresh impetus. 
Author  FXStreet
19 hours ago
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.45 during the early Asian trading hours on Thursday. WTI declines on a larger-than-expected build in US crude oil inventories. Traders will closely monitor the developments surrounding US-Iran talks for fresh impetus. 
placeholder
Gold Price Forecast: Can Gold Keep Rising After Reclaiming $4,400 as Markets Await Upcoming CPI Data?During Wednesday's Asian trading session, spot gold (XAUUSD) extended its rebound, reclaiming $4,400/oz. As of 11:08 Beijing time on August 12, spot gold was trading at $4,414.705/oz, up
Author  TradingKey
Yesterday 10: 15
During Wednesday's Asian trading session, spot gold (XAUUSD) extended its rebound, reclaiming $4,400/oz. As of 11:08 Beijing time on August 12, spot gold was trading at $4,414.705/oz, up
placeholder
WTI advances above $82.50 due to mixed signals regarding potential US-Iran dealWest Texas Intermediate (WTI) oil price extends its gains for the third successive day, trading around $82.70 per barrel during the Asian hours on Wednesday. Crude oil prices advance as investors weigh mixed signals regarding a potential deal between the United States (US) and Iran.
Author  FXStreet
Yesterday 01: 16
West Texas Intermediate (WTI) oil price extends its gains for the third successive day, trading around $82.70 per barrel during the Asian hours on Wednesday. Crude oil prices advance as investors weigh mixed signals regarding a potential deal between the United States (US) and Iran.
placeholder
Gold Price Forecast: Cooling Rate Hike Expectations Push Gold Above $4,400, Eyeing $4,500 Next As of the European session on August 11, gold prices (XAUUSD) briefly topped $4,400 intraday, reaching a high of $4,435.2, its highest level since June 5. However, gains subsequently narr
Author  TradingKey
Aug 11, Tue
As of the European session on August 11, gold prices (XAUUSD) briefly topped $4,400 intraday, reaching a high of $4,435.2, its highest level since June 5. However, gains subsequently narr
Related Instrument
goTop
quote