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
Goldman Sachs: Structurally Bullish on Gold to $5,400, But Warns of Short-Term PullbackGoldman Sachs ( GS) 's latest precious metals research report on gold ( XAUUSD) price trends presents a "structurally bullish, tactically cautious" dual outlook, maintaining its year-end
Author  TradingKey
7 hours ago
Goldman Sachs ( GS) 's latest precious metals research report on gold ( XAUUSD) price trends presents a "structurally bullish, tactically cautious" dual outlook, maintaining its year-end
placeholder
UAE Announces Exit From OPEC. Wall Street Warns: Medium-Term Oil Prices Face Downside RisksThe United Arab Emirates (UAE) has officially announced that it will formally withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance on May 1.Bl
Author  TradingKey
11 hours ago
The United Arab Emirates (UAE) has officially announced that it will formally withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance on May 1.Bl
placeholder
Gold holds steady near $4,600 as Fed rate decision loomsGold price (XAU/USD) holds steady near $4,600 during the early Asian session on Wednesday. The precious metal steadies as traders await a key Federal Reserve (Fed) interest rate decision later on Wednesday. 
Author  FXStreet
16 hours ago
Gold price (XAU/USD) holds steady near $4,600 during the early Asian session on Wednesday. The precious metal steadies as traders await a key Federal Reserve (Fed) interest rate decision later on Wednesday. 
placeholder
Fed FOMC Meeting Is Approaching: Where Is the Focus? Will There Be More Rate Cuts This Year?Global financial markets are set for a "Super Central Bank Week" this week, as five major central banks, including the Federal Reserve, the European Central Bank, and the Bank of Japan, a
Author  TradingKey
Yesterday 06: 22
Global financial markets are set for a "Super Central Bank Week" this week, as five major central banks, including the Federal Reserve, the European Central Bank, and the Bank of Japan, a
placeholder
Japanese Yen extends the range play against USD; looks to BoJ for fresh impetusThe USD/JPY pair is seen consolidating in a narrow band around mid-159.00s during the Asian session on Tuesday as traders opt to wait for the crucial Bank of Japan (BoJ) before placing fresh directional bets.
Author  FXStreet
Yesterday 01: 17
The USD/JPY pair is seen consolidating in a narrow band around mid-159.00s during the Asian session on Tuesday as traders opt to wait for the crucial Bank of Japan (BoJ) before placing fresh directional bets.
Related Instrument
goTop
quote