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Silver Price Analysis: XAG/USD challenges 21-DMA on the road to recovery


Silver rebounds to check 21-DMA after a three-day streak .
XAG/USD wavers within a symmetrical triangle on the 1D chart.
Risks remain skewed to the upside amid bullish RSI.
Silver price (XAG/USD) is snapping a three-day downtrend, rebounding towards the $28 mark, because the attention turns towards the FOMC monetary policy decision.

The Fed is probably going to points to tapering plans within the coming month, which could lift the US dollar’s demand at silver’s expense.

However, the technical setup on the daily chart is constructing a brighter outlook for the bearing metal within the near term.

Silver price is on target to recapture the $28 threshold, although it needs a sustained break above the 21-Daily Moving Average (DMA) at $27.81 to increase the recovery momentum.

If the $28 round number is cracked, silver bulls will then yearn for acceptance above the falling trendline resistance at $28.23.

A symmetrical triangle breakout will get validated on a daily closing above the latter.

The Relative Strength Index (RSI) is edging higher above the midline, allowing room for more upside.


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