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Silver bulls aim for $32.00, near YTD peak

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Silver attracts buyers for the second straight day on Friday and sticks to its gains above the $31.00 mark, near a two-month peak through the first half of the European session.

From a technical perspective, the recent XAGUSD breakout through a short-term descending trend-line resistance, around the $29.35 area, which coincided with the 100-day Simple Moving Average (SMA), was seen as a fresh trigger for bullish traders.

Adding to this, the emergence of some dip-buying on Thursday, along with positive oscillators on the daily chart, suggest that the path of least resistance for XAGUSD is to the upside.

The positive outlook is validated by the fact that the white metal now seems to have found acceptance above the $31.00 mark. Hence, a subsequent move up beyond the $31.45 intermediate hurdle, en route to the July swing high around the $31.75 zone and the $32.00 mark, looks like a distinct possibility

The momentum could extend further and allow XAG to challenge a one-decade high, around mid-$32.00s touched in May.

On the flip side, weakness below $31.00 now seems to find decent support near the $30.70 horizontal zone. Any further decline might still be seen as a buying opportunity and remain limited near the $30.00 psychological mark.

A convincing break below could accelerate the downfall and drag XAGUSD below the $29.00 mark, towards testing the next relevant support near the $28.20-28.15 zone. This is followed by the $28.00 mark and strong horizontal support near the $27.70 area, or the monthly low, which if broken might shift the near-term bias back in favor of bearish traders.

Silver daily chart by TradingView

(Source: OANDA)