Silver Breaking Down

Silver: bearish continuation

• Williams Alligator bearish;
• ADX and DI bearish;
• RSI bearish.

The price of Silver formed a descending channel, and recent selling pressure is pushing it towards the bottom trendline. The four-hour chart setup below is completely bearish. Williams Alligator is in the ebarish eating mode with all of the lines reflecting the resistance range. The latest test of the middle line failed, causing another wave of the sell-off.

The ADX and DI indicator has the mainline rising in the positive zone, which is a sign of a stronger momentum. Thus the bears have all chances to push the price lower. The surplus between the red and green lines is bearish and expanding. The Relative Strength Index is bearish, having a series of lower lows, while the distance to oversold zone is quite large so far. We expect further weakening of the price of Silver.                                                        

Pivot points:

R1: 21.282 (WA green line);

R2: 21.443 (WA red line);

S1: 20.776 (recent bottom);

S2: 20.600 (round-figure extension).