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