silver prices are experiencing a rebound after a recent pullback from a peak not seen in over a decade. To bolster the chances for continued gains, prices must break through the resistance levels at $34.25 – $34.30. Any significant drop in value is likely to attract buyers, with strong support anticipated in the $32.75 – $32.65 range.
During the Asian trading session, silver (XAG/USD) saw increased buying activity, stabilizing after a retreat from the $34.85 – $34.90 range — its highest mark since October 2012. Currently, the metal is trading just below the $34.00 level, reflecting a daily increase of over 0.50%.
Analyzing the larger trend, the recent rise above the $32.65 – $32.75 supply zone has energized bullish traders. Additionally, technical indicators such as oscillators are showing a positive trend, indicating that the general sentiment for silver is leaning towards the upside. However, caution is warranted after this week’s temporary surge above a short-term ascending channel, originating from lows observed in August.
Therefore, it is advisable to observe market behavior closely and wait for consistent buying momentum, along with a decisive move beyond the resistance levels mentioned earlier, before committing to further positions in the market. Should the price surpass these levels, there exists the potential for silver to rally towards the $35.00 psychological level, and possibly even reach the swing high from October 2012, estimated to be in the $35.35 – $35.40 range.
Conversely, the recent low around $33.45 – $33.40 may offer some protection against declines in the immediate term, with the $33.00 level acting as a significant support level. Should prices continue to fall, it is likely that buyers will step in around the $32.75 – $32.65 zone, which could prevent deeper losses. However, if further selling pressure occurs, it may favor bearish sentiment and lead to an increased downward trend.
