Silver (XAG/USD) saw some profit-taking during the Asian session on Wednesday, trimming part of the previous day’s strong rally. Currently trading around $33.65-$33.60, the white metal is down by 0.30% for the day, although the downside appears limited due to a generally bullish technical setup.
Resilient Support and Bullish Technical Indicators
Last week, XAG/USD demonstrated resilience below the $33.00 mark and the 100-period Simple Moving Average (SMA) on the 4-hour chart. This established a solid foundation for the metal’s subsequent upward move. Positive oscillators on the daily chart further confirm the bullish outlook, suggesting that any further short-term declines could offer buying opportunities, with support likely to hold near the $33.00 level.
Potential Downside Risks and Key Levels to Watch
A decisive break below the $33.00 mark could trigger technical selling, with the price potentially sliding toward last week’s low of around $32.65. A further drop could test the $32.00 level, followed by support near the $31.80 zone (the March 11 low). If these levels fail to hold, the bias could shift toward the bears, exposing the monthly low near $31.10.
Bullish Outlook and Target Levels
On the upside, bulls are likely to target a break above the $33.80 mark, which corresponds to the weekly high seen earlier on Wednesday. A move beyond this level could pave the way for a test of the $34.00 handle, with further upside potential toward the multi-month high of $34.20-$34.25, reached on March 18. Beyond this, the metal could target the multi-year peak of $34.85, touched in October.
