- Silver price has risen to a new high for May following the release of US data.
- Silver has become overbought on the 4-hour chart and is in the process of pulling back.
- It could correct lower but the overall uptrend suggests it will recover and continue pushing higher.
Silver (XAG/USD) price has risen up to a new high for May at $29.20 after the release of market-moving data from the US.
Silver is in a short-term uptrend but it has become overbought according to the Relative Strength Index (RSI) momentum indicator. The RSI is also diverging bearishly with price.
4-hour Chart
A bearish divergence occurs when price rallies to a new high but RSI does not follow suit as happened between May 10 and May 15. It is a bearish sign.
Price is pulling back on the current bar and looks like it might be forming a bearish Shooting Star Japanese candlestick pattern. If such a pattern is confirmed on close and it is followed by another bearish bar the Shooting Star will gain relevance and denote a short-term reversal lower.
When taken together with the indications from the RSI, it could be indicating Silver is about to undergo a correction – much depends on how the current and next bars develop.
Eventually the short-term uptrend should reassert itself, however, and Silver price rally higher. A break above the day’s high at $29.20 could give added confirmation of more upside to the next resistance level at circa $30.00.
A decisive break below $27.97 would bring the short-term uptrend into question.
A decisive break would be one accompanied by a long red candlestick that closed near its lows or three red candlesticks in a row.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds losses below 1.1700 amid firmer US Dollar
EUR/USD stays under pressure below 1.1700 in the European session on Friday. The pair is weighed by fading EU-US trade deal hopes as US President Trump is set to send a tariff letter to the European Union later in the day. Sustained haven demand for the US Dollar adds to EUR/USD's downside.
Meme coins to watch as Bitcoin hits record high
Meme coins Bonk, Dogwifhat, and Floki are positioned to extend gains as the weekly recovery reaches crucial resistance levels. The meme coins gain bullish momentum on the back of Bitcoin’s (BTC) recovery run, hitting a new all-time high on Thursday.
Gold price flirts with weekly top near $3,340 amid sustained safe-haven buying
Gold price attracts some follow-through buying for the third straight day on Friday and climbs to the top end of its weekly range in the European session. In a dramatic escalation of the trade war, US President Donald Trump this week issued notices to a slew of trading partners and raised concerns about a global trade war.
Unemployment rate set to rise in Canada, reinforcing expectations of a BoC rate cut
Consensus among market participants projects a slight rise in Canada’s Unemployment Rate to 7.1% in June, up from 7.0% in May. Additionally, investors forecast the economy will add no jobs in the same month, reversing May’s 8.8K increase.
GBP/USD keeps the red near 1.3550 after UK data
GBP/USD keeps losses near 1.3550 in European trading on Friday. The pair faces headwinds from an unexpected UK economic contraction in May. Additionally, a broadly firmer US Dollar on rising trade tensions continues to undermine GBP/USD.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.