Silver price reached new 14-year high at $40.98 on Wednesday.
The 14-day Relative Strength Index rebounded above the 70 mark, suggesting a potential for overbought correction.
The primary support lies at the nine-day EMA of $39.77.
Silver price (XAG/USD) maintains its position following its six-day winning streak, trading around $40.98 per troy ounce, the highest since September 2011, during the early European hours on Wednesday. The technical analysis of the daily chart suggests the price of the precious metal rises upwards within an ascending channel pattern, strengthening the bullish market bias.
The 14-day Relative Strength Index (RSI) has rebounded above the 70 level due to prevailing bullish bias, suggesting an overbought situation and a potential for a downward correction anytime soon. The Silver price is trading above the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is stronger.
On the upside, the XAG/USD pair may test the psychological level of $41.00, followed by the upper boundary of the ascending channel around $41.50. A decisive break above this key resistance zone would reinforce the bullish outlook and pave the way for the metal to approach the critical $42.00 level.
The Silver price may target its primary support at the nine-day EMA of $39.77, followed by the ascending channel’s lower boundary around $39.20. A break below the channel would weaken the bullish bias and put downward pressure on the metal price to reach the 50-day EMA of $37.91. Further losses would undermine medium-term momentum, pushing Silver toward the three-month low of $35.80, last seen on July 1.
XAG/USD: Daily Chart
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