silver has piqued the interest of buyers on Thursday, maintaining its position near a monthly peak. The current technical landscape appears favorable for bullish traders, suggesting potential for further price increases. Any minor corrections in the market are likely to be seen as advantageous buying opportunities, with substantial declines expected to remain limited.
Trading above the $32.00 level during the Asian session, silver (XAG/USD) is hovering close to the month-long high achieved earlier this week. The technical indicators signal that the metal’s most likely trajectory is upward, laying the groundwork for further gains.
The sustained move past the significant 200-period Simple Moving Average (SMA) on the 4-hour chart this week has been a critical factor driving bullish sentiment. Additionally, silver ’s recent rally has been characterized by an upward-sloping channel, reflecting a strong bullish trend. Positive signals on both the daily and hourly charts further bolster the optimistic outlook for silver , indicating that continued upward movement is plausible.
As a result, the price could advance towards retesting the monthly swing high within the range of $32.55 to $32.60, coinciding with the upper boundary of the established channel. A continuation of buying interest could signal a breakthrough, propelling XAG/USD towards the next critical resistance levels around $32.80 to $32.85, and potentially up to the psychological level of $33.00, followed by the $33.20 to $33.25 area.
Conversely, if the price falls below the $32.00 to $31.90 region, it would likely encounter support around the $31.60 zone. A decisive break below this level could incite stronger selling pressure, shifting market sentiment towards bearishness and possibly pushing XAG/USD beneath the $31.00 level, potentially targeting lower mid-$30.00 levels.
