- Silver prices are consolidating their recovery gains from a multi-week low recorded over the past two days.
- The overnight failure near the 100-period SMA on the 4-hour chart warrants caution for the bulls.
- A sustained move above the $29.00 level is needed to support prospects for further gains.
Silver (XAG/USD) price is hovering within a tight trading range around the $28.80 region during the Asian session on Friday and remains below the weekly high touched the previous day. Traders now seem reluctant and prefer to wait for the release of the crucial US Non-Farm Payrolls (NFP) report before opening fresh directional positions.
Looking at the bigger picture, the overnight failure to find acceptance above the $29.00 level, or the 100-period simple moving average (SMA) on the 4-hour chart, warrants some caution for bullish traders. Moreover, neutral oscillators on the daily chart make it prudent to wait for sustained strength beyond the said level before positioning for an extension of the recent XAG/USD bounce from the $27.70 zone, or a near three-week low set on Tuesday.
The subsequent upside move has the potential to lift the white metal further towards the intermediate hurdle of $29.65 en route to the psychological level of $30.00. Some follow-through buying beyond the August monthly high, around the $30.20 region, will be seen as a fresh trigger for the bulls and will pave the way for a further appreciating move. The XAG/USD could then rally towards the horizontal resistance of $30.80 before aiming to reclaim the round-table level of $31.00.
On the other hand, immediate support is fixed near the $28.50 region, below which the commodity could accelerate the decline towards the $28.00 level. This is followed by the weekly low, around the $27.70 zone. A convincing break below the latter could trigger aggressive technical selling and drag the XAG/USD towards the intermediate support of $27.20 en route towards the $27.00 round-table level and the next relevant support near the $26.60 zone.
Silver 4 hour chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
