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[TECHNICAL ANALYSIS] Silver starts an uptrend

XAGUSD Tech analysis by Newsroom on 16:48 January 07, 2020 EST

The precious metal has broken long term resistances and the probability of further gains is high.

Gold and silvers are both enjoying a good start of the decade. They appear to have turned the corner an are starting to form shorter term uptrends.

In particular, silver has set an important long term double bottom at $14/oz, one at the beginning of 2016 and the other at the start of 2019, and seems ready for an explosive appreciation amid global political uncertainty.

The chart also shows that the long term moving average that was defining the downtrend has now been crossed and in a shorter time frame the subsequent throw back has been reversed so this moving average is now support.

Therefore my bias for the shorter term is bullish for silver with $16/oz as medium term support that has to hold for this forecast to remain valid.