- The price of Silver continues to decline and retreats from the 12-year high reached on Thursday.
- The setup favors the bulls and warrants caution before positioning for additional losses.
- Any significant decline will likely attract some buying and remain limited.
The price of Silver (XAG/USD) extends the previous day’s modest pullback from the $32.70 area, or its highest level since December 2012, and remains under some selling pressure during the Asian session on Friday. However, the white metal attracts some buying at lower levels and is currently trading just below the $32.00 level, down 0.25% on the day.
Meanwhile, technical indicators on the daily chart remain comfortably in positive territory and are still far from being in the overbought zone. This, coupled with the recent break through short-term falling trendline resistance, favors bullish traders and suggests that the path of least resistance for XAG/USD is to the upside. That said, Thursday’s failure to build momentum beyond the $32.45-$32.50 region warrants some caution.
The aforementioned zone could continue to act as an immediate hurdle ahead of the previous day’s intraday high, around the $32.70 area. Some follow-up buying should pave the way for a move towards the recovery of the $33.00 level and lift XAG/USD further towards the intermediate hurdle of $33.45 en route to the December 2012 intraday high, around the $33.85.
On the other hand, the $31.60-$31.55 zone now seems to have emerged as immediate support. Any further decline could be considered as a buying opportunity around the $31.25 area and remain capped near the $31.00 level. A convincing break below the latter could drag of the descending trend line, now converted into support.
The latter now coincides with the 100-day SMA and should act as a key point. Failure to defend such support levels will suggest that XAG/USD has peaked and pave the way for a significant corrective decline in the near term.
Silver daily 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.
