- Silver price may test its initial resistance at the upper boundary of the ascending channel at $31.80.
- Short-term momentum is solid as XAG/USD is trading above the nine- and 14-day EMAs.
- Immediate support appears to be around the nine-day EMA at $30.47 and the 14-day EMA at $30.32.
The silver price (XAG/USD) continues to rise for the third session in a row, reaching around $30.80 per troy ounce on Wednesday during Asian hours. Analysis of the daily charts indicates an overwhelmingly bullish sentiment for this precious metal as its price continues to rise within an ascending channel.
Short-term momentum is mighty, with XAG/USD trading above both the nine-day and 14-day exponential moving average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is above the 50 level, reinforcing busy bullish sentiment.
On the other hand, the silver price may find initial resistance around the upper boundary of the ascending channel at $31.80. A break above this level could improve market sentiment and push the XAG/USD pair towards a two-month high of $32.28, last reached on December 9.
Immediate support is found at the nine-day EMA at $30.47, closely followed by the 14-day EMA at $30.32. Further support appears around the lower boundary of the ascending channel at $30.00. A break below this channel would trigger a bearish bias and put pressure on the XAG/USD pair to move regionally around the four-month low of $28.74 recorded on December 19.
