Silver is gaining upside momentum after staging a strong weekly recovery alongside gold and rallying above last weeks high. A bearish head and shoulders pattern has now been invalidated, following Wednesday’s sudden move above the $26.40 level. According to the overall size of the invalidated pattern, the price of silver could be headed towards the $27.20 area.
XAGUSD is only bullish while trading above the $26.00 level, key resistance is found at the $26.40 and the $27.20 levels.
If XAGUSD trades below the $26.00 level, sellers may test the $25.50 and $25.00 support levels.
