Silver Price Analysis: XAG/USD tips top of range and reverses lower

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Silver Price Analysis: XAG/USD tips top of range and reverses lower
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Silver price (XAG/USD) is trading in the $24.750s on Friday, after touching the top of a multi-month range at roughly $25.700 and reversing lower.

Silver price rises up and tips the top of a long-term range before reversing lower. It has formed a Bearish Japanese candlestick pattern, enhancing the reversal thesis. A move back down to a cluster of MAs in the 23.000s is foreseen subject to a continuation of the weakness. Silver price is trading in the $24.750s on Friday, after touching the top of a multi-month range at roughly $25.700 and reversing lower.

Silver versus US Dollar: Daily chart The Moving Average Convergence/ Divergence momentum indicator is threatening to cross below its signal line, adding credence to the bearish reversal. The MACD is a particularly reliable indicator within range-bound markets and a cross would provide a good sell signal. If the pair breaks below 24.405 it will probably continue south to a potential target at the cluster of major moving averages, in the lower 23.

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