Silver rallied yesterday as the USD dropped after some poor US data. The commodity stands at 26.764 level lower versus 26.994 yesterday's high.
The price has slipped lower after its amazing rally. Still, the current decline could be over anytime and the rate could resume its growth. Technically, the current retreat could help us to catch new long opportunities.
XAG/USD is bullish after registering a valid breakout through a dynamic resistance. Yesterday's new higher high signaled that the upside movement may continue.
XAG/USD Bulls In Control!
The valid breakout through the descending pitchfork's upper median line (UML) and stabilizing above the median line (ml) of the ascending pitchfork signaled a new upside momentum.
It could retest 26.646 static support before jumping higher. Consolidating above this level or stabilizing beyond the R2 (26.802) could bring a new opportunity.
XAG/USD rally was expected after failing to register a valid breakdown through the confluence area formed at the intersection between UML and ml.
Yesterday's aggressive breakout through the R1 (26.371) and above the immediate former highs represented a buying opportunity.
Consolidating above 26.646 could bring a new buying signal with a potential upside target at the ascending pitchfork's upper median line (uml).
The bias will remain bullish as long as the rate stays above the ascending pitchfork's median line (ml).