Silver Price Analysis: XAG/USD’s hourly chart points to further upside

• Silver consolidates the sharp 4-day rally in Europe.
• Technical set up continues to favor bulls.
• XAG bulls look to 24 levels in the near-term.

After the staggering rally seen over the past three days, Silver (XAU/USD) bulls are weighing in the odds for the further upside in early European trading.

On the hourly chart, the price is consolidating around 22.40 region after hitting fresh seven-year highs at 22.83 in early Asia.

The latest uptick followed by the ongoing consolidation has carved out a bull pennant formation, which is usually a bullish continuation pattern.

Therefore, a break above the falling trendline resistance at 22.28 will confirm the pattern, opening doors for a test of the 24 mark in the near-term.

The hourly Relative Strength Index (RSI), lying in the lower band of the overbought region, implies there is some space for more upside.

The bulls will continue to derive support as long as it holds above the 21-hourly Simple Moving Average (HMA) at 21.72.

The horizontal trendline support at 21.25 could limit the downside attempts.

Silver: Hourly chart

Silver: Additional levels