Silver Price Analysis: XAG/USD set to test multi-year highs at $29.85

Silver bulls gathering pace for a fresh leg higher.
Rectangle breakout spotted on the hourly chart.
Hourly RSI in the overbought region, upside not yet over.

Dhwani Mehta FXStreet

Silver (XAG/USD) has finally dived out of the three-day horizontal channel on the hourly sticks, validating the bullish break above the $27.75 level.

The hourly Relative Strength Index (RSI) points north in the overbought territory, implying there is more scope for the upside. Also, the price trades above all the major hourly Simple Moving Averages (HMA).

The bulls look to test the pattern target at $29.75, which is close to the 7.5-year highs of $29.85, reached last week.

On its way to multi-year highs, the $29 level could challenge the bulls’ commitment. The next hurdle is aligned at $29.27/41 (Aug 11 & 10 highs).

Alternatively, the bulls could be offered immediate respite at $27.75/70 area, the confluence of the pattern resistance-turned-support and bullish 21-HMA.

A break below the latter could call for a test of the horizontal 200-HMA at $27.25. A daily closing below the 200-HMA is needed to negate the near-term bullish momentum.

XAG/USD: Hourly chart

XAG/USD: Additional levels

XAG/USD

Overview
Today last price	28.29
Today Daily Change	0.84
Today Daily Change %	3.06
Today daily open	27.45

Trends
Daily SMA20	25.31
Daily SMA50	21.04
Daily SMA100	18.46
Daily SMA200	17.75

Levels
Previous Daily High	27.58
Previous Daily Low	25.83
Previous Weekly High	29.41
Previous Weekly Low	23.44
Previous Monthly High	26.21
Previous Monthly Low	17.76
Daily Fibonacci 38.2%	26.91
Daily Fibonacci 61.8%	26.5
Daily Pivot Point S1	26.33
Daily Pivot Point S2	25.2
Daily Pivot Point S3	24.58
Daily Pivot Point R1	28.08
Daily Pivot Point R2	28.7
Daily Pivot Point R3	29.82

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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