The precious metal is showing signs of recovery and could reverse the trend if the gains continue in the medium-term; once the price goes beyond $23.33, we would consider the general trend to be upwards.
The Bollinger bands are shrinking aggressively, indicating a price consolidation; however, the price has been consistently moving upwards in the last ten trading sessions. If the pair is able to break the next resistance at $22.66 on our 38.2% Fibonacci retracement, there is a lower chance of a consolidation phase. The pair is currently traded in between the bands, suggesting that the price is at a relatively fair level.
The relative strength index is at 43%, continuing the recovery from the oversold status it entered in the first half of May. Our parabolic SAR indicator suggests that the price is likely to continue moving upwards in the short term.
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