Ichimoku Cloud Support

Price action on the 4H chart of silver (ticker: XAG/USD) –

Since the Leading Span A crossed above the Leading Span B in the middle of May, silver has trended higher and reacted to the upper edge of the Ichimoku Cloud last week (the difference between the Leading Span A and Leading Span B). The reaction also recently saw price drive above the Conversion Line and Base Line (bullish signals), as well as the small downtrend line (which was drawn from the record high of $32.495).

Having seen the precious metal retest the upper side of the Ichimoku Cloud today, which is positioned close by the Conversion Line and Base Line and the recently breached trendline resistance (which could now form support if retested), this could be something that draws bullish interest.

Price Direction Favouring Bulls

The uptrend and the recent retest of the Ichimoku Cloud, along with nearby supports, prompts the idea of a possible continuation rally in silver, aiming for all-time highs of $32.945 and possibly beyond.

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