- Silver price attracts some buying on Thursday and recovers further from weekly low.
- The technical situation advises caution before positioning for any further bullish movement.
- A sustained move above the $28.00 level is needed to negate the negative trend.
Silver (XAG/USD) price is gaining some positive traction during the Asian session on Thursday and extending the previous day’s bounce from the $27.20-$27.15 region, or the weekly low. The white metal is currently trading around the $27.70 zone, up 0.40% on the day, and for now, it seems to have snapped a two-day losing streak.
From a technical perspective, this week’s repeated failures near the 100-period simple moving average (SMA) hurdle on the 4-hour chart, currently located near the $28.00 level, warrant some caution for bullish traders. Moreover, neutral oscillators on the said chart make it prudent to wait for strong follow-through buying before positioning for an extension of the recent bounce from the $26.45 area, or the more than three-month low touched last week.
The XAG/USD pair could then rally to the 38.2% Fibonacci level, around the $28.45 region, before aiming to reclaim the $29.00 level. The latter coincides with the 50% Fibonacci level and is followed by the monthly high, around the $29.20 zone, which if decisively overcome will be seen as a fresh trigger for bullish traders. The ensuing move could lift the white metal further towards the $29.70 resistance en route to the psychological $30.00 mark.
On the downside, the overnight low around the $27.20-$27.15 region now seems to protect the immediate downside ahead of the $27.00 round figure. Some follow-through selling could expose the multi-month low around the $26.45 zone, below which the XAG/USD could slide towards the $26.00 level. The downward trajectory could further extend towards the next relevant support near the $25.60 horizontal zone en route towards the $25.00 psychological mark.
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.
