XAGUSD managed to reverse the breakout on the support at $24.842. The price was able to break the resistance level and aims for the next one at our 61.8% Fibonacci retracement. The technical conditions are there for the precious metal to continue its uptrend and revert the general trend.
The Bollinger bands are wide, which will bring higher volatility to the markets; the price was trading below the lower band, which is one of the reasons why we see a rebound; the price was considered relatively low.
The relative strength index almost entered an oversold status. Still, traders reacted before this could happen. Many anticipated the price starting to go up and decided to close their short positions safely, allowing buyers to take control of the price; at least momentarily, we will have to wait and see how much further the boost from the buyers can push the price.
Our parabolic SAR indicator suggests that the price will continue to fall in the following sessions, but this is a lagging indicator, and it takes some time for it to change.
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