Silver Price Analysis: Aims to re-test fresh seven-month high around $24.00

• Silver price is oscillating around $23.70 as investors seek clarity on Fed’s policy.
• The asset has gradually corrected after a breakout of the volatility contraction pattern.
• Advancing 20-and 50-EMAs add to the upside filters.

Silver price (XAG/USD) is displaying a sideways profile around the immediate cushion at $23.70 in the Asian session. The white metal is manifesting a lackluster performance as investors are awaiting Federal Reserve (Fed)’s monetary policy for fresh impetus.

The US Dollar Index (DXY) is displaying a balanced profile as the market mood is extremely quiet ahead of Fed’s policy, which will guide investors for further action. Meanwhile, risk-perceived assets such as S&P500 futures have extended their gains in the Tokyo session.

Silver price delivered a breakout of a volatility contraction chart pattern that results in wider ticks and heavy volume. The asset has corrected after printing a fresh seven-month high around $24.00.The white metal has dropped to near 20-period Exponential Moving Average (EMA), which might present a buying opportunity to investors who prefers to enter in an auction for a bargain buy.

Meanwhile, the 50-EMA at $23.50 is aiming higher, which indicates that the upside trend is intact. The Relative Strength Index (RSI) (14) is looking to reclaim the bullish range of 60.00-80.00 to trigger bullish momentum.

Should the asset Wednesday’s high at $23.80, bulls will drive the Silver price toward Tuesday’s high at $24.11. A break above the latter will expose the asset to refresh a five-month high above April 22 high at $24.66.

Alternatively, a breakdown below Monday’s low at $23.11 will drag Silver price towards December 7 high at $22.72, followed by December 6 low at $22.03.

Silver hourly chart