The precious metal hit its record low in more than a year, and three months, shortly after that, it started to recover. It's currently 5.47% up in the last six trading sessions; the price could manage to break the resistance at 23.167 on our 23.6% Fibonacci retracement in short to mid-term.
The Bollinger bands are wide, but they are closing up, suggesting price consolidation; we see this behavior in multiple asset classes; the bands are wide enough to expect high volatility, while the price trades at a fair level relative to the bands.
The relative strength index is 45%, allowing the price to continue its upward trend once the consolidation period is over. The pair is aiming to reach the resistance and complete a breakout.
Our parabolic SAR indicator suggests that the price will continue to fall in the short term. Still, given the signals from other technical indicators, we believe that the price will slowly recover.
The short and long-term moving averages continue moving down, suggesting that the downtrend will continue, the gap between the lines continues to increase, but the last few sessions have been very good for Silver.
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