Silver Price Analysis: Faces barricades below 24.00, upside looks favored
|- Silver price is struggling to extend gains further, however, the upside looks likely.
- The asset is on the edge of delivering a breakout of the Descending Triangle chart pattern.
- Early gains in the S&P500 futures indicate that the risk profile is positive.
Silver price (XAG/USD) has witnessed a minor correction in its journey toward the round-level resistance of 24.00 in the Asian session. The white metal has broadly displayed a perpendicular upside move, therefore, the corrective move could be healthy for the Silver bulls.
The US Dollar Index (DXY) witnessed a sell-off on Wednesday after facing barricades around 102.00 and dropped to near a seven-month low at 101.10 as an appeal for the safe-haven assets squeezed ahead of the release of the United States Gross Domestic Product (GDP) data. Investors’ risk appetite is improving further as S&P500 futures are showing gains in the early Asian session.
Silver price is auctioning near the edge of the downward-sloping trendline of the Descending Triangle chart pattern on an hourly scale. The downward-sloping trendline of the chart pattern is plotted from January 16 high at $24.50 while the horizontal support is placed from January 11 low at $23.22.
Advancing 10-and 20-period Exponential Moving Averages (EMAs) at $23.83 and $23.75 respectively, indicate that the white metal bulls have a lot of strength.
The Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, which indicates that the bullish momentum is active.
A decisive move above January 20 high at $24.08 will result in a breakout of the Descending Triangle, which will drive the asset towards January 18 high at $24.35 followed by January 16 high at $24.50.
On the flip side, a break below January 24 high at $23.74 will drag the asset toward Wednesday’s low at $23.33. A slippage below the latter will further drag the Silver price toward January 23 low at $22.76.
Silver hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.