Investing.com - Technical and fundamental factors point to a short-term retracement of silver before it moves higher again in the coming weeks.
The declining trend line and some stochastic readings indicate a reversal in coming sessions.
But short-term losses should be capped by the 23.6% Fibonacci level at around the $17.791 level, with the precious metal thereafter expected to resume its upward trend.
The ABCD wave, which aims to identify support and resistance levels, backs this argument.
The exponential moving average and the moving average convergence and divergence are also supportive of a long-term bullish trend.
As a result, silver could resume its upward movement toward the $19 level, a point at which it is likely to meet strong resistance.
From a fundamental point of view, the uncertainty surrounding the Trump administration’s policies is underpinning demand for safe-haven assets such as precious metals.
This was witnessed by the market reaction to the failure of the Republican healthcare reform bill to gain support in the U.S. House of Representatives.