- Silver bulls strongly defending the $27.10 support.
- Trapped in descending triangle on the hourly chart.
- XAG/USD needs a clearance above $27.75 for a fresh leg higher.
Following the rejection at $28.50 in the US last session, Silver (XAG/USD) has remained trapped in a $1 range this Wednesday, awaiting a range breakout.
A bullish break is likely on the cards, as the price consolidation has carved out a descending triangle formation on the hourly chart. The natural tendency of the pattern is to yield a breakout.
Therefore, the bulls need acceptance above the critical hurdle at $27.75 to confirm the pattern. That level is the confluence of the 21- hourly Simple Moving Average (HMA) and the falling trendline resistance.
The spot faces an immediate barrier at $27.65, which the upward-sloping 50-HMA.
The hourly Relative Strength Index (RSI) inches lower below the midline, indicating that the bulls are likely to have a tough time regaining control.
To the downside, $27.20 is likely to offer some solid support. That level is the intersection of the 100 and 200-HMA. A break below which the horizontal trendline support at $27.10 will be put at risk.
XAG/USD: Hourly chart
XAG/USD: Additional levels
