Silver Price Forecast: XAG/USD remains above $49.00 due to prevailing bullish bias

• Silver price may test the new all-time high of $49.55 reached on Wednesday.
• The 14-day Relative Strength Index remains above 70, signaling overbought conditions.
• The initial support appears at the nine-day EMA of $47.66.

Silver price (XAG/USD) extends its gains after registering more than 2% gains, reaching the new 14-year high of $49.55 in the previous session and currently trading around $49.10 during the European hours on Thursday. The technical analysis of the daily chart timeframe suggests the price of the precious metal moves upwards within an ascending channel pattern, strengthening the bullish bias.

Additionally, the XAG/USD pair remains above the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is stronger. However, the 14-day Relative Strength Index (RSI) is positioned above the 70 level, suggesting that the Silver price is trading within overbought territory and a potential for a downward correction.

On the upside, the XAG/USD pair may surpass the new all-time high of $49.55 to test the upper boundary of the ascending channel around the psychological level of $50.00. A break above the channel would strengthen the bullish bias and lead the Silver price to explore the region around the crucial level of $51.00.

Silver price may find its initial support at the nine-day EMA of $47.67. A break below this level would weaken the short-term price momentum and put downward pressure on the Silver price to navigate the region around the ascending channel's lower boundary at $44.60. Further declines below the channel would dampen the bullish bias and put downward pressure on the XAG/USD pair to reach the 50-day EMA of $42.62.

XAG/USD: Daily Chart