Silver Price Forecast: XAG/USD tests 14-day EMA at $28.00

• Silver price faces immediate resistance around the 14-day EMA at $28.00 level.
• The daily chart analysis indicates a breakout above a descending triangle, suggesting a potential bullish trend reversal.
• The upper boundary of the descending triangle around the $27.75 level acts as immediate support.

Silver price (XAG/USD) price retraces its recent gains, trading around $27.90 per troy ounce during the European session on Wednesday. The analysis of the daily chart shows a breakout above a descending triangle pattern, which is considered a positive signal. This breakout suggests that the market may be shifting from a bearish to a bullish bias.

Additionally, the 14-day Relative Strength Index (RSI) is consolidating below 50 level, suggesting a downward trend. A break above the 50 level would indicate the emergence of an upward trend.

Additionally, the Moving Average Convergence Divergence (MACD) line has crossed above the signal line, suggesting a potential bullish signal. However, since both lines remain below the centerline (zero line), this indicates that the overall trend is still bearish. It might be wise to wait for further confirmation before making any significant trading decisions.

In terms of support, the Silver price is testing the upper boundary of the descending triangle around the $27.75 level. A return to the descending triangle would reinforce the bearish bias and push the metal asset to navigate the region around the $26.60 level, followed by May’s low at the $26.02 level.

On the upside, the Silver price tests an immediate resistance around the 14-day Exponential Moving Average (EMA) at the $28.00 level, followed by the “throwback support turned resistance” at the $28.60 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.

XAG/USD: Daily Chart