Silver Price Analysis: XAG/USD remains trapped in a pennant, awaits range breakout

Silver consolidates in a tight range around $26 this Thursday.
XAG/USD awaits fresh impetus for a range breakout on 1H.
Path of least resistance appears to the upside for the metal.

Dhwani Mehta FXStreet

Following wild swings witnessed on Wednesday, Silver (XAU/USD) has entered a phase of consolidation around the $26 mark this Thursday.

The white metal is in search of a fresh direction after having crashed to $23.50 levels a day before. Are investors looking for a bullish reversal confirmation?

Let’s take a look at XAG/USD’s hourly chart, where the price is teasing a pennant breakout at the $26 level. The Relative Strength Index (RSI) is flatlined just above the midline, still keeping buyers hopeful.

An hourly closing above the aforesaid resistance will confirm the pattern, opening doors towards the horizontal 200-hourly Simple Moving Average (HMA) at $26.64.

Further north, the bearish 100-HMA at $27.13 will be challenged to confirm a bullish reversal.

Alternatively, the immediate downside remains capped at $25.75, the confluence of the horizontal 21-HMA and bearish 50-HMA.

Acceptance below the latter could trigger a fresh slide towards the rising trendline support at $25.39.

XAG/USD: Hourly chart

XAG/USD: Additional levels

XAG/USD

Overview
Today last price	25.97
Today Daily Change	0.36
Today Daily Change %	1.41
Today daily open	25.54

Trends
Daily SMA20	24.16
Daily SMA50	20.47
Daily SMA100	18.08
Daily SMA200	17.6

Levels
Previous Daily High	26.28
Previous Daily Low	23.44
Previous Weekly High	29.86
Previous Weekly Low	24.03
Previous Monthly High	26.21
Previous Monthly Low	17.76
Daily Fibonacci 38.2%	25.2
Daily Fibonacci 61.8%	24.52
Daily Pivot Point S1	23.89
Daily Pivot Point S2	22.24
Daily Pivot Point S3	21.04
Daily Pivot Point R1	26.73
Daily Pivot Point R2	27.93
Daily Pivot Point R3	29.58

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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