FX.co ★ lstanton | XAG/USD, SILVER

Hello traders, Silver, being within a long-term uptrend, has formed an important technical signal at the peak of an impulse wave. The price reacted precisely to the upper line of the expanding channel at the level of 66.60, showing a clear slowdown and a bounce. A critical factor enhancing the prospect of a correction is the formation of a classic bearish divergence on the MACD indicator. This signal indicates a weakening of the upward impulse even during the test of a key resistance. The combination of two factors - a precise touch of the trend line and a divergence on the oscillator - forms the basis for a downward move along the width of the channel. The primary target of such a corrective movement is to test the lower channel line around 63.50. A breakthrough of this dynamic support and a consolidation below the 63.00 mark would be a significant signal.