The precious metal has been on a downtrend since mid-November and found a strong support level at $1,762. The price went under the Ichimoku cloud but managed to exit it on the recent rebound, which is not very significant, however, it could be the start of a recovery for the metal.
The Bollinger bands are very wide, which will bring high volatility to the pair in the short term, the price trades closer to the lower band, but not close enough to consider it relatively low yet, which tells us that the precious metal has not yet made it to the lowest level, the downtrend could continue for the short to mid-term after the consolidation period ends.
The relative strength index is at 46% which will allow the metal to recover some ground, however, the general trend is still downwards as the price broke the support at the 50% Fibonacci retracement. The pair is very close to this level, if it manages to go above 1,796 in the short term then we will have a trend reversal.
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