- Silver gained positive traction on Friday, reaching a nearly two-week high.
- The technical setup favors bullish momentum and suggests further gains may be ahead.
- A breakout above the $32.20-$32.25 range is necessary to confirm the near-term positive outlook.
Silver (XAG/USD) regained positive traction on Friday, climbing to a two-week high during the first half of the European session after experiencing significant price movements the previous day. However, the white metal is struggling to break above the $32.00 round figure, which warrants caution among bullish traders.
In the broader context, the recent bounce from the $30.00 psychological level and the subsequent upward movement support the potential for further gains in the near term. This optimistic outlook is bolstered by daily chart oscillators gaining positive momentum while remaining clear of the overbought zone.
That said, it would be wise to wait for follow-through buying beyond the $32.20-$32.25 resistance before making new bullish investments. Should XAG/USD break through this level, it could aim for its highest price since December 2012, making a fresh attempt to reach the $33.00 mark. Sustained strength above $33.00 would serve as a new trigger for bullish traders.
On the downside, the $31.65 horizontal zone now provides immediate support ahead of the recent swing low near $31.30. Any further decline could be viewed as a buying opportunity, with significant support expected around $31.00. However, a convincing break below this level may lead to technical selling, putting the XAG/USD at risk.
In such a scenario, the decline could pull silver below the $30.75 support zone, approaching last week’s swing low around $30.15-$30.10. This area aligns with the 50-day Simple Moving Average (SMA) and is closely followed by the $30.00 mark. A decisive break below $30.00 would likely shift the near-term bias in favor of bearish traders.
Sliver Daily chart
