Silver Steady Above $32.00, Over One-Month High
Silver (XAG/USD) traded with a positive bias above the $32.00 level during the Asian session on Thursday (12/12) and remained close to the one-month high touched earlier this week. Moreover, the technical setup suggests that the path of least resistance for the white metal remains to the upside.
This week’s sustained move beyond the 200-period Simple Moving Average (SMA) on the 4-hourly chart was seen as a key trigger for bullish traders. Moreover, the recent up-move witnessed over the past two weeks or so has been along an upward sloping channel. Moreover, positive technical indicators on the daily/hourly charts validate the near-term positive outlook for XAU/USD and support prospects for additional gains.
Hence, a subsequent up-move towards retesting the monthly swing highs, around the $32.55-$32.60 area, which now coincides with the upper boundary of the mentioned channel, looks a distinct possibility. Some follow-through buying will confirm a fresh breakout and lift XAG/USD towards the next relevant hurdle near the $32.80-$32.85 region en-route the $33.00 round figure and the $33.20-$33.25 horizontal resistance.
On the flip side, weakness below the $32.00-$31.90 area now seems to find some support near the $31.60 horizontal zone ahead of the $31.45-$31.40 confluence. The latter comprises of 200-period SMA on the 4-hourly chart and the ascending channel support, which if broken decisively might prompt aggressive selling and shift the bias in favour of bearish traders. XAG/USD might then drop to sub-$31.00 levels en-route mid-$30.00s.
Source: FXStreet
