• Silver regains positive traction following the previous day’s pullback from over one-week high.
• The technical setup favors bullish traders and supports prospects for further near-term gains.
• A break below a short-term descending channel support is needed to negate the positive bias.

Silver (XAG/USD) attracts fresh buying during the Asian session on Thursday and reverses a major part of the previous day’s retracement slide from over a one-week high. The white metal climbs to the $33.00 neighborhood in the last hour and seems poised to appreciate further.

From a technical perspective, a descending channel on short-term charts constitutes the formation of a bullish flag against the backdrop of the recent goodish recovery from the $28.45 area, or the year-to-date low touched in April. Moreover, oscillators on daily/hourly charts are holding in positive territory, validating the near-term constructive outlook for the XAG/USD.

However, it will still be prudent to wait for a breakout above the trend-channel hurdle near the $33.20 area before positioning for additional gains. The XAG/USD might then aim to surpass the $33.70 intermediate barrier and reclaim the $34.00 round-figure mark. Some follow-through buying will be seen as a fresh trigger for bulls and pave the way for a further appreciation.

On the flip side, the $32.50-$32.45 area, followed by the overnight swing low, around the $32.25 region, could offer some support to the XAG/USD ahead of the $32.00 mark. The next relevant support is pegged around the $31.60-$31.55 zone, representing the lower end of the aforementioned trend-channel, which, if broken, might shift the near-term bias in favor of bearish traders.

Silver daily chart

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