Silver Price Prediction: Rising to mini-range highs, aided by bullish momentum

Source Fxstreet
  • Silver is unfolding a bullish leg within a range. 
  • Upside is helped by bullish convergence between price and momentum. 

Silver (XAG/USD) is trading inside a broad range that stretches from the $26s to the $30s. Within that range it is oscillating within the confines of a smaller consolidation between roughly $27.70 and $29.20. 

Silver 4-hour Chart 

Silver is currently trading in the $28.80s as it unfolds an up leg towards the ceiling of the mini range. It will probably continue higher until it reaches about $29.18 (September 5 high). 

The up move from the September 6 swing low is accompanied by a bullish convergence with the Relative Strength Index (RSI) momentum indicator. The price is lower than it was on September 5 but the RSI is higher. This indicates the current up leg is accompanied by bullish conviction.   

After it reaches the top of this mini-range there is a possibility it could rotate and start moving back down towards the $27.70 floor. 

Alternatively a decisive break higher would indicate a bullish continuation. Such a move would probably reach about $30.10 and the ceiling of the broader range. The target is calculated by taking the 0.618 Fibonacci extension of the height of the smaller range and extrapolating it higher, which is the standard technical method for forecasting a range breakout.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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