Silver Is at a Crossroads

Silver broke out above the resistance at 17.20 last week and slowly continued moving to the upside, eventually forming a new high at 17.46, after which the precious metal started moving sideways and as a result it formed a hanging man candlestick above the resistance at 17.31, which coincides with the (MA)89 indicator on the daily time-frame. Because the hanging man candlestick is above the indicator, rather than below it, it is a rather dubious signal for an impending move to the downside. If it does occur and Silver does break out below 17.31, there could be a further drop towards 17.00 again. On the other hand, if the hanging man candlestick proves to be a false signal then there could be a further move to the upside towards 17.50 – 17.60.