Silver increased today after testing and retesting some support levels. The bias is still bullish despite the most recent drops. The price of silver moves somehow sideways in the short term trying to accumulate more bullish energy before resuming its upwards movement.
Today’s EU remarks regarding Brexit, BOC, and the US inflation data that will come out tomorrow have added some risk-off sentiment into the markets.
Silver has tested and retested the 23.6% retracement level and now is back above the pivot point (27.795). Making a new higher high could signal a potential upside breakout through the descending pitchfork’s upper median line (uml).
Its failure to come back towards the median line (ml) signaled that the downside is over and that XAG/USD could increase. Still, we cannot exclude a minor decline from the upper median line (uml).
The rate could decrease a little after today’s rally before resuming its upside movement towards the higher high.
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