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• Silver clears YTD high at $39.12, forming higher highs and higher lows.
• RSI enters overbought zone, but not yet signaling exhaustion or reversal.
• Key resistance lies at $39.50 and $40.00; support seen at $38.50 and $37.34.

Silver price rally continued during the week, posting gains of over 0.94% on Tuesday and reaching 14-year highs, levels last seen in September 2011. At the time of writing, XAG/USD trades at $39.25.

XAG/USD Price Forecast: Technical outlook
 

Silver price has climbed above the previous YTD high of $39.12 and continues carving successive series of higher highs and higher lows, an indication that bulls are in charge. Additionally, the Relative Strength Index (RSI) has entered overbought territory, indicating a strong trend but not yet at extreme levels, which could trigger a pullback.

If XAG/USD clears $39.50, this clears the path to challenge $40.00 an ounce. On the flip side, failure to hold above $39.00 clears the path to test the $38.50, followed by the July 21 daily low of $38.11. Once surpassed, the next stop will be the 20-day SMA at $37.34

XAG/USD Price – Chart
 

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