Silver consolidates near $38.00 as bullish momentum stalls despite RSI favoring buyers.
Break above $38.50 could spark rally toward $39.00 and $40.00.
Downside risks emerge below $37.31, with key support at $36.86 (20-day SMA).
Silver price advanced on Thursday, 0.55% as the Greenback posted solid gains during the North American session, even though Wall Street finished the session with gains. Upbeat economic data in the US suggests the economy is strong, though it was not an excuse for the grey metal to climb back above $38.00, poised to end the week almost flat.
XAG/USD Price Forecast: Technical outlook
From a price action standpoint, XAG/USD remains upwardly biased, but it has consolidated over the last three days, staying glued to the $38.00 figure. A daily close above this level opens the door for an upside recovery.
Momentum, as measured by the Relative Strength Index (RSI), indicates that buyers are in control; however, the RSI slope remains flat, suggesting a lack of catalysts that could prompt traders to enter long/short positions.
For a bullish continuation, Silver must clear the $38.50 level, allowing buyers to test $39.00. Once cleared up, the next lies $39.50 and the $40.00 mark. Conversely, if XAG/USD tumbles below $38.00, the first support would be the June 18 high, now turned support, at $37.31, followed by $37.00 and the 20-day SMA at $36.86.
XAG/USD Price Chart – Daily
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