- Silver has corrected back to key support near $30.00.
- It will likely stabilize and resume its uptrend over time.
- A decisive break below the $30.00 level would reverse the trend and trigger a further decline.
Silver (XAG/USD) corrects after reaching the high of $32.51 on May 19. It is near an important support level at $30.00, the top of a four-year consolidation range.
Silver 4-hour chart
Despite the correction, the short-term trend is probably still bullish, which, given the saying “the trend is your friend,” favors long positions over short ones.
If silver pulls back further, it will likely find support at the range-high $30.00 level. From there it is likely to rebound and resume its uptrend, possibly re-touching the high of $32.51, and then possibly surpassing it. However, there are no price action signs yet that this is happening.
A decisive break below the $30.00 level would be required to call into question the dominant uptrend.
A decisive breakout would be accompanied by a long red candle closing near its lows or three red candles in a row.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
