silver prices have regained momentum on Friday, reaching their highest level in nearly two weeks. The current technical indicators suggest a bullish outlook, with traders optimistic about further gains. However, a significant breakthrough above the $32.20 to $32.25 range is essential to confirm this positive trend.
During the initial part of the European session, the precious metal showed resilience, bouncing back from a volatile trading period earlier in the week. While silver has managed to break above the critical $32.00 level, it still faces challenges in sustaining this upward movement, indicating that bullish traders should remain cautious.
The overarching trend remains constructive, particularly following a rebound from the psychological $30.00 level. This recent upward movement is supported by daily oscillators that reflect growing strength without yet entering overbought territory. Nevertheless, traders may want to exercise caution and wait for additional buying pressure past the $32.20 – $32.25 resistance before initiating new long positions. If successful, this could set the stage for silver to approach levels not seen since December 2012 and target the significant $33.00 level.
Conversely, there are protective measures in place for the immediate downside. The $31.65 level now acts as a support zone ahead of a previous swing low near $31.30. Should silver experience a dip, this could present a buying opportunity, with a potential bottom around the $31.00 level. However, a decisive fall below this level may trigger increased selling pressure, leading to further declines.
Should the market break under the $30.75 support zone, there is a risk of revisiting last week’s swing low around the $30.15 – $30.10 range. This zone aligns with the 50-day Simple Moving Average and is closely monitored. A breach below the $30.00 level would substantially shift the market sentiment towards bearish, increasing vulnerability for silver traders.
