Silver Price Forecast: XAG/USD rebounds toward $41.50 as bullish bias persists

• Silver price may retest the psychological level of $41.50 near 14-year highs.
• The 14-day Relative Strength Index is positioned below the 70 level, suggesting a strong uptrend prevails.
• The primary support lies at the crucial level of $41.00.

Silver price (XAG/USD) recovers its recent losses from the previous session, trading around $41.10 per troy ounce during the early European hours on Wednesday. The technical analysis of the daily chart suggests the price of the precious metal moves sideways within an ascending channel pattern, indicating that market bias remains bullish.

The 14-day Relative Strength Index (RSI) is positioned slightly below the 70 level, suggesting that the Silver price is hovering around overbought territory, though the strong uptrend persists with buyers firmly in control. Additionally, the XAG/USD pair remains above the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is stronger.

The XAG/USD pair may retest a crucial resistance zone at the psychological level of $41.50, followed by the $41.67, the highest since September 2011, reached on September 8. A successful break above this level would lead the Silver price to test the upper boundary of the ascending channel around the $42.80. Further advances would strengthen the bullish bias and open the doors for the metal price to approach the crucial level of $43.00.

On the downside, the initial support lies at the psychological level of $41.00, followed by the nine-day EMA at $40.65 and the ascending channel's lower boundary around $40.20. A break below the channel would weaken the bullish bias and put downward pressure on the Silver price to reach the 50-day EMA of $38.49.

XAG/USD: Daily Chart