Silver – Feb 15
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So silver has crept back up to the 200-day Moving Average and is obviously finding some overhead resistance there.
This is not much of a surprise given the very overbought nature of the market. See how how far above the overbought line the RMI is. So from current levels the upside is extremely limited until the market becomes less overbought.
The MACD has actually now crossed to the downside so we should be careful of a correction back from these overbought levels.
The Slow Stochastic is also coming very nicely off overbought so for all the above reasons it’s not unreasonable to expect Silver to come back further.
As to targets we can look at 32.50 as the first stop support with a break below that setting up 31.29 at the Fibonacci 38.2 level (not marked). The chart says get set for downside.
The correlation with gold, the lower sub chart, is still very high indeed to watch the gold trend.
