Silver Price Analysis: Potentially resuming short-term uptrend after correction
- Silver is possibly resuming its short-term uptrend after completing a correction.
- The preceding correction took the form of a possible abc correction that looks complete.
- Silver is sideways on higher time frames.
Silver (XAG/USD) has been in a short-term uptrend since early August but after peaking on August 20 it pulled back down. This correction may have bottomed out now and the precious metal could be at the start of a resumption of the prior uptrend.
The correction possibly unfolded in the form of a three-wave abc correction. Given wave “c” reached a similar length to wave “a” the pattern has now probably finished. This makes it more likely Silver could be resuming its dominant short-term uptrend.
Silver 4-hour Chart
Silver has broken above resistance at $29.21 (August 2 high) and is on its way up to the next key resistance level at the top of wave “b” of the abc correction at $29.74. A break above that would provide more confirmation the uptrend was resuming.
The next upside target after that lies at the $30.61 resistance high (July 18 swing high).
The trend on the medium and longer-term charts is unclear and therefore probably sideways, indicating little directional bias from higher time frames.
Author
Joaquin Monfort
FXStreet
Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.
