After closing at $21.67 Friday, Silver began today at $21.77 with significant bullish sentiment driving Silver's price action higher. So far today, price action has drawn out a distinct $21.37 to $21.93 range.
Silver reversed direction at $21.85 resistance zone and retreated back 6 cents below it. Although up today, early price action saw Silver dropping below its 5 day Simple Moving Average at $21.45 — an early indicator that a new downward trend could be emerging. A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. The RSI is a momentum oscillator that measures changing price movements on a scale of 0-100. In Silver's case, the index has risen above 70, signalling that the asset is overbought. Bollinger Band® analysis indicates that current price action is approaching the upper band at $22.34, thereby suggesting that CME Silver is becoming overvalued.
Technical analysis suggests there could be an imminent reversal for Silver.
This rally in Silver's price coincides with other Metals as Gold is up 0.24%.
Meanwhile, Copper stumbles 1.57% to trade around $3.85. Platinum withdraws 1.27% to trade around $1,025.
Today's gains are adding to bullish investor sentiment as robust macro data is expected for release later today; United States Producer Price Index is projected to outperform its last figure with 0.5%. It previously stood at 0.4%; data will be released tomorrow at 13:30 UTC.
The commodity has been trending positively for about 30 days. Having set a significant low of $17.67 2 months ago, the CME Silver future is trading 22.62% higher.