Silver Price Analysis: Tests $86.00 as rally gains momentum

Silver price rallies over 7% on Monday, clearing key technical resistance at $83.05 ─the April 17 daily high, and also the $85.00 psychological figure, which opened the door towards the $86.00 per troy ounce handle.

XAG/USD Price Analysis: Technical outlook

Price action shows the white metal is exploding higher, with buyers aiming to challenge $90.00. Bullish momentum increased sharply as the Relative Strength Index (RSI) spiked nearly to overbought territory, an indication that further upside is expected.

Overhead, the first resistance is the March 10 daily high at $90.01. The move above will expose the March 2 swing high of $96.39 and open the door towards challenging the $100.00 figure.

Downwards, traders could challenge $83.05 a previous resistance turned support. A breach of the latter and a move to the 100-day Simple Moving Average (SMA) at $80.22 is on the cards. Below here, the next support is the 50-day SMA at $77.04.

XAG/USD Price Chart – Daily