Last Thursday, Silver took a 2.55% loss. The pair broke the support level at 27.584 at our 23.6% Fibonacci Retracement and fell short of reaching the second support level at 38.2%. Silver managed to recover 1.35% in the following sessions and moved laterally since then, indicating market uncertainty.
The price has been able to stay above the support at 27.58 for the last four trading sessions, and this helped the relative strength index fall to 52%, which will allow silver to continue its general uptrend in the medium term.
The Bollinger bands are closing and consolidating the uptrend. Volatility should be lower for the upcoming sessions as the bands are coming together aggressively. The short and long-term moving averages continue to move up, suggesting that the uptrend would continue.
Our parabolic SAR indicator has been suggesting a downtrend for six trading sessions, and it's our only indicator that supports a short signal. The Ichimoku cloud has been left behind, but as the trading days go by, the price could meet the cloud as it moves up, creating market uncertainty.
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