- Silver gains some continuation traction for the second day in a row on Thursday.
- A sustained move above the $ 26.30 supply zone should pave the way for additional gains.
- Mixed technical indicators on the daily chart warrant caution for aggressive bulls.
Silver has built on the positive move from the previous day and gained some continuation traction for the second day in a row on Thursday. Momentum has brought XAG / USD close to two-week highs, again near the $ 26.25-30 supply zone.
This comes after XAG / USD showed resilience below the $ 25.70 confluence support, which comprises the very important 200-day SMA and the 61.8% Fibonacci move from $ 23.78 to $ 28.75. Therefore, some continuation buying will be seen as a new trigger for the bulls and will pave the way for additional gains.
Meanwhile, the technical indicators on the daily chart, while recovering from negative territory, have yet to confirm a bullish bias. This warrants some caution before positioning for a runaway bull move, as investors may refrain from opening aggressive positions ahead of Friday’s monthly US NFP jobs report.
That said, a sustained move above the aforementioned barrier has the potential to lift XAG / USD past the immediate $ 26.55-60 hurdle, towards the 38.2% Fibonacci region around the $ 26.85 region. This is followed by the $ 27.00 level, above which the next relevant hurdle is near the mid $ 27.50, or the 23.6% Fibonacci.
On the other hand, any significant pullback below $ 26.00 could still find decent support near the 25.70 region before the weekly lows around $ 25.50. A convincing breakout of this region could make XAG / USD vulnerable and pave the way for a slide towards challenging the key psychological level of $ 25.00.
Silver daily chart
Silver technical levels
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