- 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.
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.