The precious metal has been bouncing between the support at $25.676 and its resistance at $26.847. The price was able to break the first resistance at $26.261, and it's aiming for the next one in our 38.2% Fibonacci retracement.
The price is entering the Ichimoku cloud, which often indicates market uncertainty; however, the cloud is signaling an uptrend, which should be positive for Silver.
The Bollinger bands closed out aggressively six trading sessions ago, and they are finally opening up, which will bring higher volatility to the pair. The price is closer to the upper band, and this could bring a temporary pullback, but since the relative strength index is at 48% and climbing, we do not anticipate a strong retracement.
The gap between our short and long-term moving averages is closing up, the spread is still extensive, but it's a good signal if they are getting closer.
The general trend continues to be upwards, mainly because the price is now above the 50% retracement. Our parabolic SAR suggests a downtrend, but this is a lagging indicator. We could expect this signal to change as the pair continues climbing.
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