Since mid December Silver formed an ascending channel and reached its highest value at $17.70 on January 25, which turned to be the infection point as had touched the descending trend line starting from late 2016 and the price turned its direction towards south.
Last Friday bears pushed the XAG/USD outside of the channel and didn’t leave a chance for return. As seen on the daily chart the price is now located far below the 100-day SMA, which supported the January lows, but now has turned into resistance. Another old support, new resistance is the 17.76, where today bulls attempts to move higher were halted.
On the same chart stochastic is located within extreme overbought conditions and is showing strong bearish momentum, while RSI is around its 40, but has lost directional strength.
The attempts for recovery during last sessions has failed and indicators show that the downward potential is increasing, so Silver will meet soon the key support area around $16.30.
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