Silver recovered 13% in 15 sessions

The precious metal managed to break the resistance level at the 23.6% retracement of $23.167; currently, the commodity trades inside the Ichimoku cloud, which could be interpreted as market uncertainty.

The Bollinger bands are opening up aggressively but not enough for the price to continue moving up; the price trades above the upper band, suggesting that it is relatively high, which could cause a retracement in the short term.

The relative strength index is about to enter an overbought status, which gives us another reason to believe that the price will retrace in the upcoming sessions. The progress that the metal had in the last 15 sessions is just too fast to continue; the pair needs to gather strength to continue the upwards trend.

We love to hear new ideas from traders and want to know what you think! 

If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.