Silver Price Analysis: XAG/USD breaks above $18.23-18.30 demand zone, $18.50 eyed
- A cross above the $18.23-18.30 demand zone has triggered a fresh rally ahead.
- An upside break of volatility contraction has unleashed bulls for hitting the hurdle of $18.50.
- The RSI (14) has stepped into the bullish range of 60.00-80.00.
Silver price (XAG/USD) is hovering around four-day’s high at $18.29 after a firmer upside move in the Asian session. The precious metal is advancing higher right from the initial tick of the intraday trading session and has extended its gains above the critical hurdle of $18.25. The asset is displaying signs of a bullish open-drive session ahead in which every pullback will generate a bargain buy opportunity for the market participants.
The white metal is attempting to break above the demand zone placed in a narrow range of $18.23-18.30 on an hourly scale. Also, the asset is displaying a breakout of the volatility contraction phase, which will result in wider ticks and heavy volume.
A bull cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at $18.00, is indicating more upside ahead.
Adding to that, the Relative Strength Index (RSI) (14) has stepped into the bullish range of 60.00-80.00, which has activated bulls for upside momentum.
Sustainability above the $18.23-18.30 demand zone will send the asset towards August 29 low near $18.50, followed by August 29 high at $18.83.
On the flip side, the asset will witness a steep fall to near Thursday’s low at $17.56 and the round-level support of $17.00 after dropping below Wednesday’s low at $17.90.
XAG/USD hourly chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
