Silver (XAG/USD) has entered a bullish consolidation phase following its ascent to a four-month peak during the Asian session on Wednesday, currently trading in the $32.10-$32.15 range, marking minimal change for the day. The technical indicators suggest that the recent uptrend observed over the past two weeks may extend further.
The recent breakout above a short-term descending trend-line resistance and a robust move past the $31.50 supply zone have acted as catalysts for bullish sentiment among traders. Additionally, daily chart oscillators remain firmly in positive territory, well away from the overbought zone, indicating that the path of least resistance for XAG/USD appears to be upward.
Should the momentum continue, any advance from current levels is likely to encounter resistance in the mid-$32.00s, aligning with a decade-high reached in May. Sustained buying pressure could reinforce a positive outlook, paving the way for a potential move towards the $33.00 mark, a level not seen since December 2012.
Conversely, if a significant pullback occurs, it could present a buying opportunity near the $31.50-$31.40 region, with further support levels at $31.25 and $31.00. A breach of the $31.00 mark could lead to a decline toward the $30.60-$30.55 zone, and potentially to the psychological $30.00 level, approaching the $29.70-$29.65 area, where the descending trend-line resistance now acts as support.
This support coincides with the 100-day Simple Moving Average (SMA), making it a critical pivot point. A decisive break below this confluence of support would indicate that XAG/USD may have peaked in the near term, triggering aggressive technical selling and setting the stage for a deeper corrective decline.
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