Resume the upmove, or continue with the correction lower?
Silver recently rebounded from a key support zone, at 24.53, which marks the highest point of June. Although there are signs that another upmove could be possible, we would still prefer to wait for a pop above the current highest point of July first, which is at 25.27 level.
If the precious metal rises and eventually violates the 25.27 barrier, this will confirm a forthcoming higher high, potentially attracting more buyers into the game. We may then start examining the possibility for silver to travel to the resistance area between the 26.09 and 26.13 levels, marked by the highest points of April and May respectively.
Alternatively, a drop below the aforementioned 24.53 hurdle could invite the bears back into the field, leading to a larger correction to the downside. Let’s not forget that this move lower could still be classed as a temporary correction before another possible leg of buying. This is because the commodity is still trading above a short-term tentative upside support line drawn from the low of June 23rd.
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