Chart: Potential Retracement Levels on Silver (XAG/USD)

It looks like this precious metal has broken out of that reversal pattern we were tracking earlier and is now gaining traction to the upside.

Could it be heading for a major correction soon?

Check out these turning points I’m tracking on the 4 hour chart!

Silver (XAG/USD) 4 Hour Forex Chart by TradingView

Gold has recently risen to fresh all-time highs again, so can silver follow suit?

After a somewhat rocky reaction to the FOMC decision, the precious metal looks set to continue its climb, making another attempt to break above the top of its ascending channel.

Can resistance resist again?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on the US dollar and silver yet, then it’s time to check the economic calendar and stay up to date with the daily fundamental news!

As you can see from the chart above, silver continues to hover at resistance near the pivot point level ($30.773). If the ceiling continues to hold, the price could pull back to the nearby support zones marked by the Fibonacci retracement tool.

The 38.2% level is close to S1 ($30.016), then the 50% Fib is closer to the area of ​​interest in the middle of the channel at $29.572. The 61.8% retracement is in line with S2 ($29.049) and the 200 SMA dynamic inflection point. The 100 SMA is above the 200 SMA, suggesting that support levels are more likely to hold than break, potentially sending silver back to the swing high and beyond.

If silver bulls are too excited to charge, XAG/USD could simply pause for recent highs at $31,450 and climb steeper to the next upside targets at R1 ($31,838) then R2 ($32,498 USD).

Remember to practice proper risk management and be aware of top market catalysts when trading it. Luck!