XAG / USD bulls prepare for a move past the $ 27.80 resistance zone

• Silver gains traction for the second day in a row on Monday and rises to multi-day highs.
• The technical setup favors the bulls and supports the prospects for a move past the $ 27.80 resistance.
• Only a sustained break below $ 27.00 will nullify the constructive outlook for the white metal.

Silver is moving higher for the second day in a row on Monday and is trading near the four-day high, around the $ 27.65-70 region at the start of the American session. The white metal has now closed in on last week’s highs, around the $ 27.80 region, which if decisively broken should pave the way for additional gains.

Meanwhile, intraday and daily technical indicators have been gaining positive traction and support prospects for a further bullish move in the near term. Therefore, a subsequent strength beyond the round level of $ 28.00, to test the next relevant hurdle near the $ 28.40-50 region, now seems like a clear possibility.

Some continuation purchases have the potential to propel XAG / USD past the recent daily closing highs around the $ 29.00 level. Momentum could extend towards the $ 29.50 level and the intermediate obstacles of the $ 29.80-85 region (2020 highs), on its way to the $ 30.00 psychological level, in multi-year highs hit earlier this month.

On the other hand, the $ 27.30-20 region now appears to defend the immediate drop. Any further decline could be seen as a buying opportunity and will remain limited by the horizontal support near the $ 27.00 level. Failure to defend the aforementioned support levels will negate the bullish outlook and lead to some aggressive technical selling.

Silver daily chart

Silver technical levels