Silver Price Analysis: The XAG/USD price has converged into a triangle formation
- Silver has fallen 0.60% on Tuesday despite gold pushing higher.
- There is now a chart pattern forming USD 26 per ounce is a decent support.
Silver daily chart
Since the silver price rally, the price has pulled away from the recent high which fell short of the USD 30 per troy ounce mark. Now the price has converged into a triangle pattern. This a clear consolidation before the market decides what the next move will be but a directional break could give us some major clues on the future path of the metal.
The chart has a very strong support level too. The red line just above USD 26 per ounce has been tested at least four times cementing its importance. On the topside, the next wave high is pretty far off at USD 28.90 per ounce and the bulls will be looking to take out that level.
The indicators look like they are pulling away from depressed levels. The Relative Strength Index has been in the oversold area but is now moving to the mid-point. The MACD histogram is just about in the green but the signal lines are still under the zero point.
On the longer-term charts, the price is still in a clear uptrend. A break of the price pattern to the upside could take the price to the recent highs near USD 30 per ounce.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
