Silver rebound after the most recent drop and it could confirm a larger growth soon. The rate failed to stabilize under 25.000 psychological level indicating strong buyers. The risk-off sentiment dominates the markets, that's why we could see further growth on XAG/USD.
The price should continue to increase if the price of gold resumes its upwards movement. Some poor US data during the week could help the price of silver to jump above the immediate obstacles confirming more gains.
XAG/USD Upside Confirmed!
As you can see on the H4 chart, the price has decreased to retest the broken downtrend line, the Falling Wedge's resistance. Now is almost to reach the median line (ML) again which represents strong dynamic resistance.
The support stands at the weekly S1 (24.708) and the resistance is seen at the weekly R1 (25.715). The rate could move sideways within this range before really confirming a larger growth.
Only a valid breakout above the median line (ml) and through the weekly R1 could validate a strong swing higher towards the upper median line (uml).
Forecast!
The downtrend and S1 retest represented a buying opportunity with a first upside target at the median line (ml). We'll have a new long opportunity if the price jumps, closes, and stabilizes above the R1 (25.715).
Such a breakout may signal a bullish momentum towards the upper median line (uml) of the ascending pitchfork.
The material has been provided by InstaForex Company - www.instaforex.com