Silver Price Analysis: $27.75 is the level to beat for the XAG bulls
- Silver bulls strongly defending the $27.10 support.
- Trapped in descending triangle on the hourly chart.
- XAG/USD needs a clearance above $27.75 for a fresh leg higher.
Following the rejection at $28.50 in the US last session, Silver (XAG/USD) has remained trapped in a $1 range this Wednesday, awaiting a range breakout.
A bullish break is likely on the cards, as the price consolidation has carved out a descending triangle formation on the hourly chart. The natural tendency of the pattern is to yield a breakout.
Therefore, the bulls need acceptance above the critical hurdle at $27.75 to confirm the pattern. That level is the confluence of the 21- hourly Simple Moving Average (HMA) and the falling trendline resistance.
The spot faces an immediate barrier at $27.65, which the upward-sloping 50-HMA.
The hourly Relative Strength Index (RSI) inches lower below the midline, indicating that the bulls are likely to have a tough time regaining control.
To the downside, $27.20 is likely to offer some solid support. That level is the intersection of the 100 and 200-HMA. A break below which the horizontal trendline support at $27.10 will be put at risk.
XAG/USD: Hourly chart
XAG/USD: Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
