Silver (XAG/USD) showed upward momentum during Wednesday’s Asian session, aiming to extend gains after rebounding from the $28.70-$28.65 range, marking a nearly one-month low. As of now, the precious metal is trading around $29.35, up by more than 0.30% for the day but still below this week’s peak reached on Monday.
Technical analysts view the recent breach of a short-term trading range as a bearish signal, reinforced by negative movements in daily chart oscillators suggesting a downward trend for XAG/USD. However, Tuesday saw a bounce from the $28.60-$28.55 support zone, previously the June monthly swing low, prompting cautious optimism.
Looking ahead, resistance near the $29.40-$29.45 zone, corresponding to this week’s high, poses a potential hurdle. A break above this level could encounter further resistance around $29.80, followed by psychological resistance at $30.00. Beyond this point, a surge in buying pressure might propel XAG/USD towards the $30.35-$30.40 range, now acting as resistance after previously serving as support.
Continued bullish momentum could pave the way for a reclaim of the $31.00 mark, potentially targeting the $31.40 supply zone and aiming towards the year-to-date peak in the mid-$32.00s, noted in May.
Conversely, a decline below $29.00 may find support at the $28.60-$28.55 area, reinforced by the 100-day Simple Moving Average (SMA). A decisive drop below this support could expose XAG/USD to further downside, testing the $28.00 level and potentially reaching towards the $27.50-$27.40 support range.
Analysts advise monitoring these key levels closely for potential shifts in market sentiment as XAG/USD navigates technical resistance and support zones in the coming sessions.