Silver Breaks Record, Can It Reach $42?
The price of silver (XAG/USD) hit a new 14-year high, breaking through $40.81 per ounce on Wednesday (European time). This surge marked a six-day rally and reinforced bullish sentiment in the market, with silver moving within an ascending channel pattern, indicating the continued dominance of the uptrend.
Technically, the 14-day Relative Strength Index (RSI) is above 70, indicating overbought conditions. This means that although the uptrend remains strong, the potential for a price correction in the near term is quite high. However, silver remains above the 9-day Exponential Moving Average (EMA), indicating solid short-term momentum.
If the bullish momentum continues, silver is expected to test the psychological level of $41.00 and could advance to the upper limit of the channel around $41.50. A breakout of this area would potentially lead to the next target of around $42.00. This increase would further emphasize the positive medium-term outlook for the precious metal.
Conversely, if selling pressure increases, silver could fall to test support at the 9-day moving average (EMA) at $39.77, then to the lower boundary of the channel around $39.20. A break below this level would weaken the bullish trend and potentially drag the price to the 50-day moving average (EMA) at $37.91, or even to the recent three-month low of $35.80. (ayu)
Source: Newsmaker.id
