Negative divergence in momentum indicators including the RSI shouldn't be ignored by longs in the overcrowded Silver trade.
For further insight and discussion please contact me via Tradingview or LinkedIn, on Twitter @James_LVDTA, and visit lexvandam.com to become a member of the Trading Club.
- Silver currently trading around 20.20
- Selling has been seen 50 cents higher around 20.70 over the past month
- Support levels: 19.09 (38%), 17.83 (62%), 16.94 (78%)
- Resistance level: 21.12 (high pivot)
- Downside target: $18 (and possibly a test of the upward sloping 2016 trend line currently above $17)
- Trade management: Sell within 20.17-76 with a stop (on daily close) above 21.12
For further insight and discussion please contact me via Tradingview or LinkedIn, on Twitter @James_LVDTA, and visit lexvandam.com to become a member of the Trading Club.
Trade closed manually
The case for a retracement may no longer be valid: 
Do not get caught short precious metals as the case for owning gold appears to be regaining ground as USDJPY falls.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.