XAG/USD: Price Analysis and Forecast. Technical Situation Favors Bulls

[Ben Graham]

At the beginning of the new week, silver continues its recent established upward trend, rising to a new record high of $69.45. The technical picture strongly favors the bulls, suggesting the path of least resistance for the white metal remains upward.

The breakout of the horizontal resistance at $67.40 last week, along with Monday's breakthrough of the round level at $68.00, amidst multiple price bounces off the 100-hour simple moving average (SMA) over the past two weeks, serves as a renewed trigger for bulls. The subsequent consolidation above the round level of $68.00 has confirmed the positive outlook, leading silver to establish a new historical high around $69.45. The 100-hour SMA has an upward slope, confirming the continued optimistic forecast.

The primary support level is at the round number of $68.00. Additionally, it is worth noting that the daily RSI (Relative Strength Index), currently in the overbought zone, suggests that a correction may precede further price increases for the white metal.

The material has been provided by InstaForex Company - www.instaforex.com