There any silver bears around?
The daily time frame shows that this precious metal is hanging out at the very top of its declining channel, which suggests that the long-term drop will soon continue.
Given that the oscillator has already begun to decline from the overbought zone, stochastic is in favor of a selloff. Before it reaches the oversold region, it has lots of space to travel south, therefore the commodity price may do the same.
As silver is making higher highs while Stochastic is making lower highs, I'm also noticing some bearish divergence.
Moving averages appear to be preparing for a bullish crossing, though, since the distance between the 100 SMA and 200 SMA has drastically shrunk.
If that occurs, more buyers may be attracted, and silver may try to break through the channel top. If you're expecting to see a reversal, you'd better keep a look out for breakout candlesticks above the $24 level!
