Silver Price: XAG/USD hovers around $30.50 within a horizontal channel

LONDON (December 17) Silver price (XAG/USD) remains subdued for the fifth successive day, trading around $30.50 per troy ounce during the Asian hours on Wednesday. Analysis of the daily chart indicates a period of market consolidation as the pair is confined within the horizontal channel pattern.

Additionally, the alignment of the nine- and 14-day Exponential Moving Averages (EMAs) suggests that the short-term price movement is experiencing a period of consolidation, lacking a strong directional momentum. However, the 14-day Relative Strength Index (RSI) consolidates below the 50 mark, suggesting an emergence of the bearish bias.

On the downside, the XAG/USD pair may find its primary support around the lower boundary of the horizontal channel at $29.90, followed by a “throwback support” level at its three-month low of $29.65, which was recorded on November 28.

Regarding its resistance, the XAG/USD may test the nine- and 14-day EMAs at $30.82 and $30.90, respectively. A break above these levels could cause the bullish bias to re-emerge and help the Silver price to retest its six-week high of $32.28, reached on December 9, followed by the horizontal channel’s upper boundary at $32.50.

FXStreet