Rising to mini-range highs, helped by bullish momentum

• Silver deploys a bullish leg in a range.
• Upside is aided by bullish convergence between price and momentum.

Silver (XAG/USD) is trading in a wide range that stretches from $26 to $30. Within this range, it is oscillating within a minor consolidation between around $27.70 and $29.20.

4 hour silver chart

Silver is currently trading at $28.80 as it runs a leg up towards the mini-range ceiling. It will likely continue higher until it reaches around $29.18 (September 5 high).

The upward move from the September 6 low is accompanied by an upward convergence with the relative strength index (RSI) momentum indicator. The price is lower than it was on September 5, but the RSI is higher. This indicates that the current up leg is accompanied by an optimistic belief.

After it reaches the top of this mini-range, there is a possibility that it will turn around and start moving back down towards the $27.70 level.

Alternatively, a larger decisive break would indicate a bullish continuation. Such a move would likely reach around $30.10 and the cap of the wider range. The target is calculated by taking the 0.618 Fibonacci extension of the lower range height and extrapolating it higher, which is the standard technical method for forecasting a range breakout.