Silver Price Prediction: Shallow pull back within uptrend

Silver is correcting within its August uptrend.
If the precious metal breaks above the August high of $30.19 it will probably extend the rally.

Joaquin Monfort FXStreet

Silver (XAG/USD) has pulled back after running up to new highs for the month of August at $30.19.

The precious metal is in a short-term uptrend, however, and given “the trend is your friend” it is expected to resume – going higher once the pull back ends.

Silver 4-hour Chart

A break above the August high at $30.19 would help confirm more upside, with the next target coming into view at $30.61 the July 18 swing high. The fact the pull back is shallow increases the chances it will peter out and more upside will materialize.

A break below support at $29.23 (August 2 high), however, would be a bearish event and indicate a possible reversal of the short-term uptrend.

The trend on the medium and longer-term charts is unclear – possibly 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.

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