Chart of the day: Silver

Blake Morrow Forex Analytix

Silver may test "channel resistance" which is the channel silver has been in since 2014 (July) and tested it in 2016, 2019 and may get tested once again. This level comes in at the 19.25 level. This is also the 161% extension of the recent triangle breakout as well (19.31). We should take into consideration that the daily RSI is nearing overbought and divergent. Also, the DSI (daily sentiment index) is registering at a high 89, which suggests bulls are at an extreme. That is why a test of this long term channel may be significant resistance if we reach it.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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