Silver Price Forecast: XAG/USD remains close to multi-year top; bulls retain control near $48.30

• Silver attracts fresh buyers and remains close to a multi-year top touched earlier this week.
• The formation of an ascending channel points to a well-established short-term uptrend.
• The daily RSI is still flashing overbought conditions and warrants caution for bullish traders.

Silver (XAG/USD) regains positive traction following the previous day's modest pullback and climbs to the $48.30 region during the Asian session on Wednesday. Moreover, the white metal remains within striking distance of its highest level since April 2011, touched earlier this week, and seems poised to appreciate further.

The recent move up witnessed over the past two weeks or so, along an ascending channel, points to a well-established uptrend and validates the positive outlook. However, the daily Relative Strength Index (RSI) is holding above the 70 mark, pointing to still overbought conditions and warranting some caution for the XAG/USD bulls. Hence, it will be prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move.

Nevertheless, the XAG/USD seems poised to climb further beyond the $48.75 region, or the multi-year peak, and aim towards reclaiming the $49.00 mark. The momentum could extend further towards the April 2011 swing high, around the $49.80 zone, before bulls aim to conquer the $50.00 psychological mark for the first time.

On the flip side, any corrective slide now seems to find decent support near the $48.00 round figure. This is closely followed by the Asian session trough, around the $47.75-$47.70 region, and the overnight low, around the $47.35-$47.30 zone. A convincing break below the latter would confirm a breakdown below the aforementioned trend channel and prompt some technical selling. The XAG/USD might then weaken further towards the $47.00 mark en route to the $46.65-$46.60 support.

Silver 4-hour chart