- Silver’s path of least resistance appears to the upside.
- XAG/USD ranges in a week-long symmetrical triangle.
- Hourly RSI turns flat but remains in the bullish zone.
Silver (XAG/USD) extends its consolidative mode into Europe on Monday, awaiting a fresh impetus for a sustained move above the $24 mark.
Broad-based US dollar weakness seemingly benefits the white metal while from a short-term technical perspective, the bullion holds above a bunch of healthy support levels, as depicted by the hourly chart.
The spot extends its range play while trading within a week-long symmetrical triangle formation, with a breakout expected on either side.
However, the upside appears more compelling, as the price has recaptured all the critical Simple Moving Average on the said time frame. The bulls now look to test the falling trendline resistance at $24.14.
Acceptance above the latter would validate the triangle pattern, opening doors for a test of $24.50 levels.
The hourly Relative Strength Index (RSI) has turned flat but holds well above the midline, suggesting that there Is additional scope for gains.
To the downside, strong support around $23.80 will likely limit the pullbacks. That zone is the confluence of the horizontal 21, 50 and 100-HMAs.
Further south, the rising trendline support at $23.69 could be put to test.
XAG/USD: Hourly chart
XAG/USD: Additional levels
XAG/USD: Additional levels
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