Silver's Epic Rally Fizzles: Monthly RSI at 91 Screams Overbought – Sell Rallies to $78 Targeting $70-$62

Monthly RSI- 91 (Overbought)

Bearish divergence - CCI(50)- Monthly chart

Silver lost most of its gains following a great jump of more than $12 from a temporary bottom $70.38. It hit an intraday peak of $82.66 and is now trading around $77.19.

Trading Strategy and Key Levels for Silver

On the monthly chart, Silver is trading over long-term moving averages (200 and 365- EMA) and short-term (34 and 55 EMA). In the monthly chart, RSI is trading above 90, which points to extremely overbought circumstances and suggests it is better to wait for a significant drop for reentry. The near-term support is about $76.40, and any breach below will draw the commodity to $75.20/$74.20/$71.90/$70/$68.30/$65.98/$62/$58.62. The first resistance is at $78; any breach above targets $80/$82.65/$83.59/$87.90/$90.

It is good to sell on rallies around $78 with a stop-loss at $82.50 for a TP of  $70.05/$62.