- Silver edges lower during the Asian session, though it lacks follow-through selling.
- The mixed technical setup warrants caution before placing fresh directional bets.
- A sustained move above the $48.00 mark would be seen as a key trigger for bulls.
Silver (XAG/USD) struggles to find acceptance above the $48.00 round figure and attracts some sellers during the Asian session on Thursday. The white metal, however, manages to hold comfortably above its lowest level since September 25, touched on Tuesday, and currently trades just below mid-$47.00s, down 0.20% for the day.
From a technical perspective, this week’s rebound from the 50-day Exponential Moving Average (SMA) and the subsequent move up favor the XAG/USD bulls. However, oscillators on the daily chart have just started gaining negative traction. This, in turn, warrants some caution before confirming that the recent corrective decline from the all-time peak touched earlier this month might have run its course.
Meanwhile, the $47.00-$46.95 area now seems to protect the immediate downside, below which the XAG/USD could slide back below the $46.00 mark and retest the 50-day EMA support near the $45.55 . A convincing break below might be seen as a fresh trigger for bearish traders and drag the commodity to the $45.00 psychological mark en route to the $44.45 region, the $44.00 mark, and the $43.55 area.
On the flip side, any positive move beyond the $48.00 round figure is likely to attract some sellers and face a strong barrier near the $48.45-$48.50 region. Some follow-through buying should pave the way for a move towards the $49.00 mark, which, if cleared, should allow the XAG/USD to extend the momentum towards the $49.45 region before aiming to reclaim the $50.00 psychological mark.
Silver daily chart
