The precious metal lost more than 6% in the previous two trading sessions, temporarily breaking the support level on our 50% Fibonacci retracement, but the pair came back in yesterday’s sessions and now is attempting to break the resistance on the 38.2% retracement at $24.84.
The Bollinger bands are starting to open up, which will likely increase volatility in the upcoming trading sessions, the pair trades closer to the lower band, but is not yet considered relatively low, the metal could complete the breakout on the resistance and continue the uptrend in the short to medium-term.
The relative strength index is at 48% which will allow Silver to resume the uptrend after retracing more than 50%, the price is being pushed downwards by the pressure of sellers, but buyers seem to be winning the battle for now. If the price manages to break the resistance we would expect the price to reach the $25 price level very soon.
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