Since markets opened this week, the price of silver has dropped over 130 pips and is currently trading around the 26.60 level. Technical indicators are now showing that the precious metal may be due for a bullish correction in the near future. This could give ForexYard traders an excellent opportunity to open buy positions at a great entry price before the upward breach occurs.
We will be looking at the daily chart for silver. The technical indicators being analyzed are the Williams Percent Range, Stochastic Slow and Relative Strength Index.
1. The Williams Percent Range is currently at the -90 level, well below what is considered to be oversold territory. Typically, when a commodity reaches this level, an upward correction soon follows.
2. The Stochastic Slow has just formed a bullish cross, further signaling that an upward correction is likely to occur.
3. The Relative Strength Index is currently approaching the oversold region. Should it breach the lower support line, silver will likely start to move north.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
