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Silver Technical Divergence

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If you thought something odd was going on with the silver price, you were right. A major silver technical divergence has opened up as the silver price fell, but technical indicators continued to move higher.

Terry Kinder precious metals analysisBullion.Directory precious metals analysis 24 September, 2014
By Terry Kinder

Investor, Technical Analyst

Have you ever had the feeling that something isn’t right, but you can’t put your finger on it? Day after day the silver price falls. But, has the economy really improved so much to justify silver prices at these levels?

A significant silver technical divergence has occurred.

A significant silver technical divergence has occurred as the silver price fell while technical indicators including MACD, RSI, and KDJ have gone up.

Looking at the monthly COMEX continuous silver chart, you can see that the silver price has been falling for months. At the same time, technical indicators – MACD, RSI, KDJ – have all gone up.

This is not a situation that can continue on forever.

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So, the question is, how will this silver technical divergence resolve? Will the indicators fall to match the falling silver price, or will the silver price rise to match the rising technical indicators?

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