The precious metal lost almost 10% in the last seven trading sessions, the general trend is now downwards as the price broke our 50% Fibonacci retracement last Friday, this often suggests a trend reversal and we would expect the price to continue falling in the short term.
The short and long-term moving averages crossed on April 13th and the gap between the lines continues expanding, strengthening the short signals; however, there are some indicators that suggest that the price is likely to recover some ground in the next few sessions.
The Bollinger bands are opening up aggressively, more so the lower band, which could act as support at $23.28, however, the pair is trading slightly below this level and the breakout could be completed soon, the next support level is on our 78.6% Fibonacci retracement at $23.123.
The relative strength index is at 31% which is almost oversold, this is likely to incentivize investors to place long positions as they will be entering at a low price. Our parabolic SAR indicator suggests that the price will continue falling in the short term.
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