Flat pullback within the uptrend

• Silver is correcting within its uptrend from August.
• If the precious metal breaks through the August high of $30.19, the rally is likely to continue.

Silver (XAG/USD) has retreated after reaching a new high of $30.19 in August.

However, the precious metal is in a short-term uptrend and given the motto “the trend is your friend”, it is expected that the trend will continue and it will continue to move higher after the decline ends.

Silver 4-hour chart

A break above the August high at $30.19 would confirm further upside, with the next target coming into view at $30.61, the July 18 swing high. The fact that the decline is small increases the likelihood that it will ease and further upside is possible.

However, a break below the support level of $29.23 (August 2 high) would be a bearish event and would indicate a possible reversal of the short-term uptrend.

The trend on the medium and longer term charts is unclear – possibly sideways – which suggests that there is little directional bias on higher time frames.