Silver Price Analysis: XAG/USD eyes a break above $27 amid rectangle breakout

Silver looks to extend the bullish momentum, tracking Gold.
Rectangle pattern breakout spotted on the hourly sticks.
A pullback cannot be ruled out before the uptrend resumes.

Dhwani Mehta FXStreet

Silver (XAG/USD) is on a roll higher and tests fresh all-time highs, taking cues from its close peer, gold.

The spot sits at record highs above $26.75 and looks to break above the $27 barrier amid a bullish technical set up.

From a short-term technical perspective, the white metal remains exposed to further upside risks, given the rectangle pattern breakout spotted on the hourly chart in early Europe.

The technical breakout calls for a test of the pattern target at $27.27 before which the bulls could face stiff resistance at $27.00 (round figure).

The hourly Relative Strength Index (RSI) holds steady in the overbought territory. Therefore, temporary pullbacks cannot be ruled before the bullish spin resumes.

The corrective declines could meet strong demand at the horizontal pattern resistance-turned-support at $26.32, below which the upward-sloping 21-hourly Simple Moving Average (HMA) at $25.92 could come into play.

All in all, the path of least resistance is to the upside in XAG/USD.

Silver: XAG/USD hourly chart

Silver additional levels

XAG/USD

Overview
Today last price	26.70
Today Daily Change	0.80
Today Daily Change %	3.08
Today daily open	26

Trends
Daily SMA20	21.67
Daily SMA50	19.32
Daily SMA100	17.21
Daily SMA200	17.32

Levels
Previous Daily High	26.04
Previous Daily Low	24.14
Previous Weekly High	26.21
Previous Weekly Low	22.32
Previous Monthly High	26.21
Previous Monthly Low	17.76
Daily Fibonacci 38.2%	25.31
Daily Fibonacci 61.8%	24.86
Daily Pivot Point S1	24.75
Daily Pivot Point S2	23.49
Daily Pivot Point S3	22.85
Daily Pivot Point R1	26.65
Daily Pivot Point R2	27.29
Daily Pivot Point R3	28.55

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.

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