Negative divergence warning to longs in overcrowded Silver trade
Updated
Negative divergence in momentum indicators including the RSI shouldn't be ignored by longs in the overcrowded Silver trade.
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- Silver currently trading around 20.20
- Selling has been seen 50 cents higher around 20.70 over the past month
- Support levels: 19.09 (38%), 17.83 (62%), 16.94 (78%)
- Resistance level: 21.12 (high pivot)
- Downside target: $18 (and possibly a test of the upward sloping 2016 trend line currently above $17)
- Trade management: Sell within 20.17-76 with a stop (on daily close) above 21.12
For further insight and discussion please contact me via Tradingview or LinkedIn, on Twitter @James_LVDTA, and visit lexvandam.com to become a member of the Trading Club.
Trade closed manually
The case for a retracement may no longer be valid: 
Do not get caught short precious metals as the case for owning gold appears to be regaining ground as USDJPY falls.
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