Silver (XAG/USD) struggles to capitalize on its gains registered over the past two days and oscillates in a narrow range during the Asian session on Friday. The white metal currently trades around the $78.25-$78.30 region, nearly unchanged for the day, and remains close to a one-week high, touched on Thursday.
From a technical perspective, this week's breakout through a one-week-old ascending trend-channel resistance, which coincided with the 100-hour Simple Moving Average (SMA), was seen as a key trigger for the XAG/USD bulls. The 100-hour SMA has flattened around $76.32 after a modest rise, and spot prices hold above it to preserve an intraday bullish bias.
Meanwhile, the Moving Average Convergence Divergence (MACD) line sits marginally below the Signal line near the zero mark, with a slightly negative histogram that points to subdued momentum. However, the Relative Strength Index (RSI) stands at 55, neutral with a mild upward tilt. Moreover, acceptance above the 100-period SMA underpins the breakout structure.
A turn of the MACD histogram back to positive would reinforce upside follow-through. A firming RSI above 60 would signal strengthening momentum, while a drop beneath 50 would warn of fading impetus. The former descending channel hurdle at $75.58 could act as initial support on pullbacks, while deeper protection aligns with the channel floor near $70.31.
Absent fresh momentum, the XAG/USD could consolidate, but maintaining levels above the moving average would keep the near-term bias upward.
Comments
Log in or sign up to join the conversation.