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