Silver (4H) breakout battle begins

Silver rebounded after carving out a double-bottom pattern near a five-month low of 55.58 last week and close to the lower boundary of its broader bearish channel.
XM Group | 68 days ago

Overview: As the bulls approach the pattern's upper band, a short-term pullback cannot be ruled out, though it may simply be a pause in the emerging upleg.

Momentum: The RSI and stochastic oscillator are testing overbought levels, flagging some caution ahead. However, the MACD continues to strengthen in positive territory, suggesting any retreat could be short-lived.

Bullish scenario: A break above the 23.6% Fibonacci level at 63.55 could fuel gains toward 66.32. Then, attention will turn to the 200-SMA and the 38.2% Fibo at 68.47.

Risk: A drop below 61.50 could shift momentum back in the bears' favour.

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