Silver Price Analysis: XAG/USD eyes establishment above $20.00 on bullish flag formation

• A bullish flag formation is indicating a continuation of upside momentum.
• Overlapping 20-and 50-EMAs signals that consolidation will stay a little longer.
• A bullish momentum will trigger if the RSI (14) recaptures the bullish range of 60.00-80.00.

Silver price (XAG/USD) has sensed barricades after attempting a break above the critical hurdle of 19.60 in the Tokyo session. On a broader note, the asset has turned sideways after failing to cross the psychological resistance of $20.00.

A Bullish Flag formation on an hourly scale is supporting bulls. The formation of a Bullish Flag denotes a consolidation phase after a vertical upside move. The north-side sheer move is been recorded from September 7 low at $17.88. The consolidation phase of a Bullish Flag indicates an initiative buying structure in which the buyers initiate longs after the establishment of a bullish bias.

The 20-and 50-period Exponential Moving Averages (EMAs) at $19.38 and $19.34 respectively are tangled with each other, which signals a consolidation ahead.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range but that doesn’t resemble a bearish reversal.

A decisive break above the psychological resistance of $20.00 will drive the bright metal towards August 11 low at $20.25, followed by August 15 high at $20.87.

On the flip side, silver bulls could lose their grip if the asset drops below Friday’s low at $18.78 for a downside towards September 8 low at $18.32. A breach of the latter will drag the asset towards September low at $17.85.

Silver hourly chart