The precious metal had a solid rally during the last weeks, and although it's finding pullbacks along the way, we expect the upward trend to continue in the short to mid-term. The price continues trading above the short and long-term moving averages, indicating that the uptrend would continue, the current retracement will allow the pair to come back stronger.
The Bollinger bands are wide, the price was trading above the upper band which suggested that the price was relatively high, the current pullback will allow the commodity to continue its rally. We could see the price fall to the support level at our 38.2% Fibonacci retracement of 24.233.
The relative strength index is currently at 55%, recovering from an overbought status, which is one of the reasons why we see a retracement, now that the RSI is at a more neutral position, the uptrend could resume.
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