Can risk-taking extend its stay in the financial markets?
If so, these uptrend correction levels on XAG/USD are worth keeping tabs on!
Here’s where silver bulls might be hanging out:
Silver (XAG/USD) 4-hour Chart by TV
With most major central banks downplaying the possibility of interest rate hikes anytime soon, it looks like traders are getting hungry for more risk again!
If that’s the case, higher-yielding assets like precious metals might be poised to extend their gains. How high can silver go from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework, then it’s time check out the forex calendar and stay updated on daily fundamental news!
XAG/USD is already cruising higher inside an ascending trend channel on its 4-hour time frame, and price just staged a strong bounce off support.
There seems to be a bit of a roadblock at the mid-channel area of interest near R1 ($24.59) but a break above this could still pave the way for a move to the channel top or R2 ($25.33).
After all, the 100 SMA is above the 200 SMA to confirm that the uptrend is likely to gain traction from here. Silver is also making its way back above the 100 SMA dynamic inflection point, so this could hold as additional support moving forward.
However, Stochastic is starting to turn south after hitting the overbought zone, suggesting a potential return in bearish vibes. In that case, silver could make another dip to the channel bottom near S1 ($22.80).
Just make sure you watch out for the release of the U.S. core PCE price index on Friday when trading this one. Good luck!