As noticed that Silver is following the downtrend since April 2016 and will likely to remain in the same path. Below chart shows price of silver is trading close to a strong resistance zone (Straight blue line) which acted very well earlier. The downward sloping trend line started its origin from September 2017 and it is the fifth time when prices (XAGUSD) are trading at this trend line.
Recent scenario shows that there are two major divergences* in Moving Average Convergence and Divergence (MACD) and Relative Strength Index (RSI) where price action is forming higher highs and MACD and RSI are acting differently making lower highs (Red dotted lines are there for better understanding).
We see Shooting star# which is a bearish reversal candlestick pattern at the previous peak (latest peak at trend line).
Forecast – we can go for sell position below 15.75 for the Target of 15 and any close above 16 will negate the view.
* Negative divergence points to lower prices in the future. It occurs when the price is moving higher but a technical indicator is moving lower or showing bearish signals.
# Shooting star is interpreted as a type of reversal pattern, which indicates a fall in the price which is found in an uptrend. It is made up of single candle with a small lower body, little or no lower wick, and a long upper wick that is at least two times the size of the lower body.