Silver prices broke out of its long-term consolidation on the daily chart to the upside in the aftermath of the FOMC decision, in order to continue the long term uptrend seen on the weekly chart.
However, silver has now found itself in a new consolidation range. The top end of the range is the 23.6% Fibonacci retracement level of the swing low -> swing high trace of Sept 2 2018 to Sept 1 2019. The floor is the Jan 21 2018 high.
Price action will therefore need to break this range in order to show uptrend continuation or a retracement dip. A price dip below 17.48 could open the door for further retracement to the 50% Fibo level at 16.78, while a continuation of the uptrend would take the price above the ceiling to target the 18.73 price area (Sep 6 high).
On the flip side, continued consolidation could provide range trading opportunities on the 4-hour chart until the uptrend is resumes or the downtrend is re-established.Don’t miss a beat! Follow us on Telegram and Twitter.