The precious metal had a very good Monday session, it managed to close the session with a 3.74% gain, breaking the resistance level on the 50% Fibonacci retracement at $25.095 reaching its highest level since August 2021.
The Bollinger bands are very wide, which will allow high volatility in the markets, the pair trades closer to the upper band, suggesting that the price is relatively high, this will likely push the price of Silver down a few notches, the price could find support at the previous resistance level of $25.095 but we think that would be hard.
The relative strength index is at 72%, an overbought status that would likely incentivize traders to close their long positions, pushing the price down back to one of the retracement levels. Our parabolic SAR indicator suggests that the price will continue to climb in the short term, however this is a lagging indicator. We could see the price pullback temporarily to the low $24 levels.
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