Violet lines- Fibonacci retracement levels

Red line- bearish RSI divergence

Blue lines- bullish channel

In our previous analysis on Silver we noted how important it was for bulls to keep price inside the upward sloping channel. Support at $22.78 was respected. Price continues making higher highs and higher lows inside the blue upward sloping channel. Price has now surpassed the 78.6% Fibonacci retracement resistance. Support is now key at $23.17. So far there is no sign of a reversal. The bullish momentum is weakening according the RSI. The RSI has made one more lower high providing another bearish divergence. This is only a warning and not a reversal sign. Traders need to be cautious.