- Silver is moving higher for the third day in a row on Friday and jumps to highs of more than a week.
- The bulls are now awaiting a sustained move above the $ 28.30 region before positioning for additional gains.
Silver has built on the good bounce the day before from weekly lows and has gained some positive traction on the last trading day of the week. This marks the third consecutive day of upward movement and has pushed the white metal to a week-and-a-half high, around the $ 28.25-30 area at the start of the European session.
The aforementioned region marks a high resistance zone and coincides with a short-term uptrend line break point. A sustained move above this region will be seen as a further trigger for the bulls and will set the stage for an extension of the recent bounce from near the $ 27.00 level, at monthly lows touched last Thursday.
Meanwhile, the technical indicators on the daily chart are comfortably in bullish territory and support the prospects for further gains. That said, the oscillators on the hourly charts are already showing mild overbought conditions and warrant some caution before positioning for any further bullish movement.
Therefore, the bulls are likely to expect some subsequent buying above the $ 28.25-30 confluence hurdle. A sustained force above this region has the potential to push XAG / USD towards monthly highs, around the $ 28.75 region, on its way to the $ 29.00 level. The next relevant barrier is near the $ 29.40-50 region before targeting the key psychological level of $ 30.00.
On the other hand, the breaking point of the weekly trading range resistance, around the $ 28.00-$ 27.90 region now appears to defend the immediate decline. Any subsequent decline could still be seen as a buying opportunity and remain limited near the lows of the previous day, around the $ 27.40 region, which should now act as a strong foundation for the XAG / USD.
Silver daily chart
Silver technical levels
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