FX.co ★ Silver Set To Continue Higher

XAG/USD has retested the near-term support levels and now it could jump higher again. Passing above today's high could really validate more gains in the short-term. Technically, silver is located in the buyer's territory, so we could see a bullish momentum soon if the price stays above the 24.000 psychological level.

Silver could climb higher if gold starts to appreciate again. The lockdowns caused by the COVID-19 crisis, the global risk, and the risk-off sentiment could push XAG/USD higher again.

Silver has retested the upper median line (UML) of the minor descending pitchfork and now is back above the median line (ML) of the major down pitchfork. Its failure to reach the S1 (24.057) signals that the bulls are still strong.

A bullish breakout above the Pivot Point (24.671) suggest buying as the metal should resume its upside journey. Technically, the gold price is somehow expected to jump towards the 25.563 high after failing to reach the median line (ml) of the minor black descending pitchfork.

• SILVER Trading Tips

We could go long if the price jumps and closes above the PP (24.671) level. The first upside target is seen at 25.563 former high. Actually, you can use the R2 (25.835) and R3 (26.393) as potential targets.

The upside scenario will be invalidated if gold drops and stabilizes under the S1 (24.057) and below the upper median line (uml).