Silver (XAG/USD) saw a pullback during the Asian session on Thursday, eroding a portion of the gains it had accumulated over the past three days. The white metal is currently trading in the mid-$32.00 range, down 0.35% for the day. However, the near-term outlook remains skewed towards a bullish trend, suggesting potential for further appreciation.
Technical Outlook: Bullish Momentum Builds
From a technical perspective, silver demonstrated resilience below the 100-day Exponential Moving Average (EMA) last Friday. Oscillators on the daily chart have regained positive momentum, reinforcing a constructive short-term outlook for the commodity. As a result, a move towards the $33.00 level, with the possibility of testing the February swing high near $33.40, seems likely.
The next key resistance level is around $33.60-$33.70. A breakout above this region could propel silver towards the psychological $34.00 mark, and potentially as high as the $34.50-$34.55 zone. If the bullish momentum continues, silver could aim for its highest level since October 2012, with the $35.00 level emerging as a key target.
Support Levels to Watch
On the downside, the $32.30-$32.25 range is expected to act as strong support, followed by the $32.00 mark. Should silver breach these levels, the next major support is at $31.80, with potential further declines towards the $31.25-$31.20 range. If prices fall below the 100-day EMA, currently near $31.10-$31.00, the outlook could turn more bearish. A significant drop beneath last week’s swing low at $30.80 would shift sentiment in favor of sellers.
Despite the recent dip, silver’s technical setup indicates that the bullish bias remains intact, with prospects for continued upward movement.
