Silver price may approach $37.32, the highest since February 2012.
The bullish bias strengthens as the 14-day Relative Strength Index holds above the 50 mark.
The nine-day EMA at $36.49 acts as the immediate support.
Silver price (XAG/USD) edges lower after halting a three-day winning streak, trading around $36.50 per troy ounce, down by more than 1%, during the European hours on Monday. The technical analysis of the daily chart suggests the price of the precious metal remains within an ascending channel pattern, indicating a bullish bias is prevailing.
The 14-day Relative Strength Index (RSI) remains above the 50 level, strengthening a bullish outlook. However, Silver price is trading slightly above the nine-day Exponential Moving Average (EMA), but appears poised to break below it, indicating potential weakening of short-term price momentum.
On the upside, the XAG/USD pair may retest $37.32, the highest since February 2012. A successful breach above this level could support the Silver price to explore the region around the upper boundary of the ascending channel around the psychological level of $39.90.
The Silver price is testing the immediate support at the nine-day EMA of $36.49. A break below this level could weaken the short-term price momentum and put downward pressure on the pair to navigate the area around the ascending channel’s lower boundary at $36.00 level, followed by the 50-day EMA at $35.00.
Further declines would weaken the medium-term price momentum and prompt the price of Silver to navigate the region around the two-month low at $31.65, which was recorded on May 15.
XAG/USD: Daily Chart
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