The precious metal suffered a retracement that sank the price below the support level at 23.167 at the 23.6% Fibonacci retracement. In the last three sessions, it managed to recover the lost ground and trades above the resistance of our 38.2% retracement at 24.233.
The Bollinger bands are starting to shrink, indicating that the volatility could be lower in the short term. The price is trading closer to the upper band, suggesting that the price is relatively high; however, it still has some more room to go before traders start to exit their long positions.
The relative strength index is at 61%, which is also getting closer to that overbought status, but we could continue to see an uptrend as long as it stays below 70%. The price needs to consolidate the breakout on the resistance, 38.2% retracement is usually a good support level in case of a pullback, but we have to wait until it's tested to determine its strength.
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