Silver Price Forecast: XAG/USD bulls retain intraday control above $33.00 mark

FXStreet
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  • Silver regains positive traction following the previous day’s pullback from the monthly peak.

  • The bullish technical setup supports prospects for a further near-term appreciating move.

  • Dips below the $33.00 mark might still be seen as a buying opportunity and remain limited.

Silver (XAG/USD) builds on the previous day's bounce from the $32.60 area and gains some follow-through positive traction on Friday. The momentum extends through the early European session and lifts the white metal to a fresh daily peak, around the $33.25-$33.30 region in the last hour.

Looking at the broader picture, the emergence of dip-buying validates this week's breakout through the top end of a nearly one-month-old descending channel was seen as a key trigger for bullish traders. Moreover, oscillators on the daily chart have just started gaining positive traction, which, in turn, supports prospects for a further near-term appreciating move for the XAG/USD.

Some follow-through buying beyond the $33.65-70 resistance zone, or the highest level since early April touched on Thursday, will reaffirm the constructive setup and allow the XAG/USD to reclaim 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, weakness back below the $32.00 mark might still be seen as a buying opportunity and remain cushioned near the XAG/USD near the overnight swing low, around the $32.60 region. The latter should act as a pivotal point, which if broken decisively might expose the 100-day Simple Moving Average (SMA) support, currently pegged just above the $32.00 mark.

Some follow-through selling could make the XAG/USD vulnerable to testing the lower boundary of the aforementioned trend channel, currently around the $31.40 region. A convincing break below will negate the positive outlook and shift the near-term bias in favor of bearish traders, which, in turn, should pave the way for some meaningful downside.

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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