Silver attracted some sellers during the Asian session on Wednesday and eroded a part of the previous day’s strong move up. The white metal currently trades around the $33.65-33.60 area, down 0.30% for the day, though the downside seems limited on the back of a bullish technical setup.
The XAGUSD last week showed some resilience below the $33.00 mark and the 100-period Simple Moving Average (SMA) on the 4-hour chart. The subsequent move-up and positive oscillators on the daily chart validate the positive outlook. Hence, any further intraday slide could be seen as a buying opportunity and remain limited near the said handle.
A convincing break below, however, might prompt some technical selling and drag the XAGUSD further below last week’s low, around $32.65, towards testing the $32.00 figure. This is followed by supports near the $31.80 zone (March 11 low), which if broken might shift the bias in favor of bears and expose the monthly low, around $31.10.
On the flip side, bulls might now wait for a move beyond $33.80, or the weekly high, before placing fresh bets. The XAG/USD might then reclaim the $34.00 mark and climb further to a multi-month top, around $34.20-34.25 touched on March 18, en route to a multi-year peak, around $34.85 seen in October.
XAGUSD chart by TradingView
(Source: OANDA)