Silver Price Forecast: XAG/USD faces rejection near descending channel hurdle, around $33.00
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Silver dives to over one-week low on Monday amid the optimism over the US-China trade deal.
The mixed technical setup warrants caution for bears and before positioning for further losses.
A sustained strength beyond the $33.00 mark will set the stage for additional near-term gains.
Silver (XAG/USD) attracts heavy intraday selling in the vicinity of the $33.00 round figure and dives to over a one-week trough during the first half of the European session on Monday. The white metal, however, shows some resilience below the $32.00 mark and currently trades around the $32.25 region, still down over 1.25% for the day.
From a technical perspective, the XAG/USD once again faced rejection near a resistance marked by the top boundary of a short-term descending channel. Moreover, oscillators on daily/hourly charts have started gaining negative traction and support prospects for a further depreciating move. However, the said channel constitutes the formation of a bullish flag pattern against the backdrop of the recent goodish recovery from the $28.45 area, or the year-to-date trough touched in April.
The aforementioned mixed setup warrants some caution for bearish traders and suggests that any subsequent fall is more likely to attract some dip-buyers near the $31.70 region, or the monthly low. This, in turn, should help limit the downside near the descending channel support, currently pegged just ahead of the $31.00 mark. A convincing break below the latter, however, will be seen as a fresh trigger for bearish traders and pave the way for some meaningful downfall in the near term.
On the flip side, the $32.65 area now seems to act as an immediate barrier ahead of the $33.00 mark, or the descending channel hurdle. A sustained strength beyond will confirm a fresh breakout and allow the XAG/USD to accelerate the move higher towards the $33.70 intermediate hurdle before aiming to reclaim the $34.00 mark.
Silver 4-hour chart
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