- Silver oscillates in a range near a multi-month high touched on Tuesday.
- The technical setup favors bulls and supports prospects for further gains.
- Any corrective slide could be seen as a buying opportunity near $30.40.
Silver (XAG/USD) consolidates in a range around the $34.00 mark during the Asian session on Wednesday and remains close to its highest level since late October touched the previous day. The technical setup, meanwhile, seems tilted in favor of bulls and suggests that the path of least resistance for the white metal remains to the upside.
This week’s bounce from the $33.40 resistance-turned support, along with positive oscillators on the daily chart, validates the constructive outlook and supports prospects for an extension of a nearly three-week-old uptrend. Some follow-through buying beyond the overnight swing high, around the $34.20-$34.25 region, will reaffirm the positive bias and lift the XAG/USD beyond the $34.50-$34.55 intermediate hurdle, towards the $35.00 neighborhood, or a multi-year high touched in October.
On the flip side, any corrective pullback might continue to find some support near the $33.40 region, below which the XAG/USD could accelerate the fall toward the $33.00 round figure. A convincing break below the latter could pave the way for a fall towards the 100-day Exponential Moving Average (EMA) pivotal support, currently pegged near the $31.50-$31.45 zone. This is followed by the $31.25-$31.20 support, the $31.00 mark, and the late February low, around the $30.80 area.
Failure to defend the said support levels might shift the near-term bias in favor of bearish traders and make the XAG/USD vulnerable to accelerate the downfall towards the $30.45-$30.40 support en route to the $30.00 psychological mark. The white metal could eventually drop to the $29.55-$29.50 support and test sub-$29.00 levels, or the year-to-date low touched in January.
XAG/USD daily chart
