Silver Price Forecast: XAG/USD bulls have the upper hand near $33.15-$33.20 area, over one-week top

FXStreet
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  • Silver attracts some dip-buyers and turns positive for the second straight day on Wednesday.

  • The overnight breakout above a short-term ascending trend-channel favors bullish traders.

  • Any corrective slide below $33.00 could be seen as a buying opportunity and remain cushioned.

Silver (XAG/USD) reverses an intraday dip to the $33.00 neighborhood and climbs to over a one-week high during the first half of the European session on Wednesday. The white metal currently trades around the $33.15-$33.20 region, up 0.20% for the day, and seems poised to appreciate further.

The emergence of dip-buying validates the previous day's breakout above the top end of a short-term descending trend-channel, which constituted the formation of a bullish flag pattern. Moreover, the recent repeated bounce from the 100-day Simple Moving average (SMA) and the fact that oscillators on the daily chart have just started moving in positive territory validate the near-term positive outlook for the XAG/USD.

Some follow-through buying beyond the $33.60 resistance zone will reaffirm the constructive setup and allow the XAG/USD to aim towards reclaiming the $34.00 round-figure mark. The subsequent move up has the potential to lift the white metal back towards the year-to-date high, around the $34.55-$34.60 zone touched in March.

On the flip side, the ascending channel hurdle breakpoint, around the $33.00 mark, now seems to have emerged as an immediate support. Any further corrective slide could be seen as a buying opportunity and remain limited near the $32.65 horizontal zone. Some follow-through selling, however, would expose the 100-day SMA, currently pegged just above the $32.00 mark, which, if broken, might pave the way for further losses.

Meanwhile, the lower boundary of the aforementioned trend-channel, currently around the $31.40 region, should act as a strong near-term base for the XAG/USD. A convincing break below the latter, however, will negate the positive outlook and shift the near-term bias in favor of bearish traders.

Silver daily 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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