Thursday, 9 March 2017

XAG/USD Confluence of July's trend line and June's support

Since the beginning of February Silver prices are sharply sloping to downwards. Today the price surpassed the important support level at $17.00 and currently is trading at $16.95.
On the daily chart is clearly seen the confluence of the downward trend staring from July 2016 and the support line at June’s 2016 lows. Could this be read as a turning point or a minor stop before continuation of the short term trend?
The same chart is also showing very bearish readings. Both RSI and stochastic are placed well below their mid-lines and are displaying strong bearish momentum.
Given the fact that the US Dollar is relatively strong now, there is reasonable opportunity Silver to continue losses even below December’s 2016 trend line. 



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