Early in the American session, Silver (XAG/USD) is trading at 29.55, bouncing above the bottom of the downtrend channel and above the 200 EMA located at 29.29 on the 4-hour chart.
Since it formed a double top pattern between May 17 and May 28, silver has made a strong technical correction and has just reached oversold levels. A technical rebound is likely to occur in the coming days provided that the price consolidates above 200 EMA at 29.29.
In case silver consolidates above 6/8 Murray located at 29.87, the outlook could be positive and the metal could reach 7/8 Murray at about 30.46 and even the top of the downtrend channel around 30.73.
The latest negotiations in the instrument have been bearish, but the price could reach support levels and we could look for an opportunity to buy above the low of 29.37. Besides, if silver consolidates above 29.68, it will also be seen as an opportunity to buy.
On the other hand, if the instrument falls below 29.20, it could begin a bearish acceleration and the price could reach the low of 27.10 where it was trading in early May.
Our trading plan for the next few hours is to buy silver at the current price levels or wait for a technical bounce above 29.30 in the next few hours with targets at 29.68, 30.46, and 30.75.
