Silver Price Forecast: XAG/USD Tests A Key Resistance Zone Above $31.00

By Akhtar Faruqui of FX Street

Forex Analyst • Nov 21, 2024 at 5:16 AM EST

Silver price may appreciate as daily chart analysis suggests a possible momentum shift from bearish to bullish. The key resistance area appears at the descending channel’s upper boundary, aligned with the 14-day EMA at $31.27.

Silver price (XAG/USD) appreciates to near $31.10 per troy ounce during the European hours on Thursday. The daily chart analysis suggests a possible shift in momentum from bearish to bullish as the pair attempts to break above the upper boundary of the descending channel pattern.

Furthermore, the 14-day Relative Strength Index (RSI) is currently positioned just below the 50 level, indicating the potential for a momentum reversal. A decisive break above the 50 mark would confirm the development of a bullish bias.

In terms of the upside, the Silver price tests a key resistance zone near the upper boundary of the descending channel, which aligns with the 14-day Exponential Moving Average (EMA) at $31.27. A decisive break above this region could trigger the bullish bias, paving the way for a move toward the psychological resistance of $32.00.

On the downside, the Silver price may find support around its “throwback support” at the psychological level of $30.00. A break below this level could deepen bearish sentiment, potentially driving the price lower toward the descending channel's bottom boundary at $28.50.

XAG/USD: Daily Chart

(Click on image to enlarge)

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