Silver Price Analysis: XAG/USD eyes ascending triangle breakout above $22.80
- Silver is poised for a range breakout, with an upside move likely.
- XAG/USD looks for an ascending triangle breakout on the 4H chart.
- RSI points north above the midline, supporting the bullish view.
Silver price (XAG/USD) is breaking higher from its prison range seen over the past one week, as the bulls are back in the game, looking to recapture the $23 mark.
The sharp pullback in the US dollar across the board amid readjustment of the positions has collaborated with the upside in the USD-denominated white metal.
Looking at silver’s four-hour chart, the price has been trading within an ascending triangle formation since October 3, now aiming for the pattern hurdle at $22.81.
Silver price has managed to find a strong foothold above the powerful resistance at $22.59, where the 21 and 50-Simple Moving Averages (SMA) intersect.
The Relative Strength Index (RSI) edges higher above the central line, backing the upbeat view.
A four-hourly candlestick closing above the horizontal trendline resistance at $22.81 will confirm an upside break of the ascending triangle pattern, calling for attest of the $23 mark.
The next significant upside barrier awaits at the descending 200-SMA at $23.15.
Silver Price Chart: Four-hour chart
On the flip side, rejection at the trendline hurdle could recall the sellers, downing the rates towards the abovementioned strong resistance-turned-support at $22.59.
The horizontal 100-SMA at $22.49 will be threatened if the downside momentum picks up steam.
Further down, the rising trendline support at $22.37 will be the last line of defense for silver bulls.
Silver 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.
