XAGUSD has seen a progressive double top in the last 6 months of trading, with another test looking likely. The recent headlines surrounding the metal led prices to another attempt at the high $29 level.
Since the latest pullback, bulls have ignored the long-term bearish divergence on the momentum indicator, as the trend continues higher.
With a bounce found at the Ichimoku cloud, this has also kept bias elevated as we look to another push towards recent highs.
A short-term intraday perspective shows a further recovery to monthly highs. The recent bullish divergence could propel prices back above the $29 handle.
Focus now turns towards the 50% of the 29.95/25.91 downside Fibonacci leg for further clues on the direction. Should this level be broken, then the 61.8% would be likely.
A move then past recent tops towards the psychological $30 region would boost bullish sentiment further. Since prices are trading away from the Ichimoku cloud, further progress is likely.
