Silver testing major resistance, potential drop from here!

Silver (XAGUSD) is testing major resistance at 16.63 (Fibonacci retracement, horizontal overlap resistance, descending resistance) and a strong reaction could occur at this level to push price down towards 16.38 support (Fibonacci retracement, horizontal swing low support, Fibonacci extension). We can see our long term descending resistance line add a lot of bearish pressure to our idea.

RSI (21) sees a long term corresponding descending resistance line hold price down really well too. Only a break above this descending resistance line would be a precursor to a larger recovery in silver.

Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.