Key Takeaways:
- Silver is in a bullish leg within a trading range.
- Bullish convergence is observed between price and momentum indicators.
Silver Trading Range
Silver (XAG/USD) is currently trading within a range that spans from the $26s to the $30s. Within this broad range, it is moving within a smaller consolidation range between approximately $27.70 and $29.20.
Upside Momentum
Trading in the $28.80s, Silver is on an upward trajectory towards the upper boundary of the smaller range. The price is expected to rise until it reaches around $29.18, which was the high on September 5.
The upswing observed from the September 6 low is supported by a bullish convergence with the Relative Strength Index (RSI) momentum indicator. Despite the price being lower than on September 5, the RSI is higher, indicating strong bullish conviction.
If Silver reaches the top of the smaller range, it may potentially reverse course and move back towards the lower limit around $27.70. However, a decisive breakout above $29.20 would signal a continuation of the bullish trend. This move could drive prices towards $30.10, the upper boundary of the broader range, based on the 0.618 Fibonacci extension of the smaller range height.