Silver Price Forecast: XAG/USD trades with mild positive bias around mid-$32.00s

FXStreet
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  • Silver once again finds some support and attracts buyers near the $32.20 area.

  • The formation of a bullish flag pattern supports prospects for additional gains.

  • Any meaningful slide could be seen as a buying opportunity and remain limited.


Silver (XAG/USD) attracts some dip-buyers near the $32.20 area during the Asian session on Friday and climbs to a fresh daily high in the last hour. The white metal, however, remains well within the previous day's broader trading range and currently trades just above mid-$32.00s, up over 0.25% for the day.


From a technical perspective, the recent price action along a downward sloping channel constitutes the formation of a bullish flag pattern against the backdrop of a goodish recovery from the $28.45 area, or the year-to-date low touched in April. Moreover, oscillators on daily/hourly charts are holding in positive territory, suggesting that the path of least resistance for the XAG/USD is to the upside.


Any subsequent move up, however, is likely to confront some resistance ahead of the $33.00 round figure or the overnight swing high. This is closely followed by the top boundary of the descending channel, currently around the $33.15 zone, below which the XAG/USD could accelerate the move higher towards the $33.70 intermediate hurdle before bulls aim to reclaim the $34.00 mark.


On the flip side, the $32.25-$32.20 region now seems to have emerged as an immediate strong support. Any further weakness, leading to a subsequent break below the $32.00 mark, could expose the descending channel support near the $31.50-$31.45 zone. The latter should act as a pivotal point, which, if broken, will negate the constructive setup and shift the near-term bias in favor of bearish traders.


Silver 4-hour chart



* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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