Silver Price Forecast: XAG/USD treads water above $42.00 near 14-year highs

LONDON (September 15) Silver price (XAG/USD) maintains its position after registering more than 1.5% gains in the previous session, trading around $42.20 per troy ounce during the European hours on Monday. The technical analysis of the daily chart suggests the price of the precious metal moves upwards within an ascending channel pattern, indicating that market bias is bullish.

The XAG/USD pair remains above the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is strengthening. The 14-day Relative Strength Index (RSI) is positioned slightly above the 70 level, suggesting that the Silver price is trading within overbought territory and a potential for a downward correction. However, the strong uptrend persists with buyers firmly in control.

On the upside, the XAG/USD pair may target the $42.46, the highest since September 2011, reached on September 12. A successful break above this level would lead the Silver price to explore the region around the upper boundary of the ascending channel, around $43.50.

The initial support lies at the psychological level of $42.00. Further declines would prompt the Silver price to test the nine-day EMA at $41.33, followed by the ascending channel’s lower boundary around $40.80. A break below the channel would weaken the bullish bias and put downward pressure on the Silver price to navigate the area around the 50-day EMA of $38.89.

FXStreet