silver has shown a rebound after experiencing a pullback from a recent high, indicating renewed buying interest. This recovery suggests that bullish traders are gaining confidence, and there are prospects for further short-term gains. The market remains optimistic, but a significant move below a short-term descending channel support would be required to change this favorable outlook.
During the Asian trading session on Thursday, silver (XAG/USD) experienced a surge, reclaiming much of the ground lost in the previous day’s decline. The price approached the $33.00 mark, signaling potential upward momentum. This resurgence follows a robust recovery from the $28.45 level, which was the lowest price noted in April.
From a technical standpoint, the formation of a descending channel on shorter-term charts resembles a bullish flag pattern. This serves to support the bullish sentiment, particularly as momentum indicators on both daily and hourly charts remain positive. While the outlook is constructive for the precious metal, traders may want to wait for a breakout above the significant resistance level near $33.20 to confirm the trend.
Should silver manage to break this resistance, it could target higher levels, aiming to surpass the intermediate barrier at $33.70 and possibly reach the psychological mark of $34.00. Continued buying interest at these levels would further validate the bullish scenario and could trigger additional gains.
Conversely, should the price decline, the $32.50 to $32.45 range, followed by a swing low around $32.25, may provide essential support before reaching the $32.00 threshold. A drop below this level, particularly breaking the support near $31.60-$31.55, could indicate a shift in bias toward bearish sentiment.
