Silver Price Forecast: XAG/USD could surpass $28.00 to test upper boundary of the channel

LONDON (July 30) Silver price holds position around the $28.00 level per troy ounce during the European session on Tuesday. The analysis of the daily chart indicates a bearish bias as the XAG/USD pair consolidates within the descending channel pattern.

Additionally, the 14-day Relative Strength Index (RSI) is consolidating above 30 level, suggesting confirmation of a downward trend. A break below the 30 level would indicate an oversold situation of the asset currency and is due for a correction in the short term

Additionally, the momentum indicator Moving Average Convergence Divergence (MACD) suggests a bearish trend for Silver price. This configuration indicates that the overall trend is negative as the MACD line is above the centreline and the signal line.

In terms of support, the Silver price could navigate the area around the lower boundary of the descending channel at $26.40, followed by May’s low at $26.02 level.

On the upside, the Silver price could find immediate resistance around the upper boundary of the descending channel at the level of $28.30, followed by the “throwback support turned resistance” at the $28.60 level and nine-day Exponential Moving Average (EMA) at the $28.63 level.

A breakthrough above the latter could lead the XAG/USD pair to explore the region around the two-month high at the $31.75 level.

FXStreet