- September 15, 2020
- Posted by: Analysis Team
- Category: Forex News
- Silver set to test triangle resistance on the daily chart at $28.26.
- Daily RSI remains bullish while the bulls recapture critical 21-DMA.
- XAU/USD now trades above all major daily averages.
Silver (XAG/USD) consolidates the rally to eight-day highs of $27.52, extending Monday’s surge amid ongoing sell-off in the US dollar across its main competitors.
Despite the renewed upbeat momentum, the price wavers within a symmetrical triangle, carved out since early August.
However, the upside appears more compelling in the near-term, as the price has pierced through the critical 21-daily Simple Moving Average (DMA), currently at $27.11 for the first time since September 2.
A daily closing above the 21-DMA is needed for the bulls to confront the triangle hurdle at $28.26. On its way northwards, the spot could face stiff resistance at the $28 mark.
The bullish bias is also backed by the 14-day Relative Strength Index (RSI), inching higher at 56.60. Further, the price trades above all major DMAs, indicative of the positive trend.
On the flip side, if the bulls fail to witness a daily closing above 21-DMA, a test of the triangle support at $26.44 will become inevitable.
Acceptance below the latter will confirm a symmetrical triangle breakdown, opening floors for a test of the upward-sloping 50-DMA at $24.95.
XAG/USD: DAILY CHART