Silver Investors May Wait For A Move Above $33.00 Before Speculating
Silver (XAG/USD) attracted some dip buyers at the start of a new week and touched an intraday high around the $32.80 region during the Asian session (4/21). However, the white metal remained below the $33.00 level and near a two-week high touched last Thursday, warranting some caution for bullish traders.
From a technical perspective, XAG/USD now seems to have found acceptance above the 61.8% Fibonacci retracement level of the recent slump from March swing highs to fresh YTD lows touched earlier this month. Moreover, oscillators on the daily chart have started gaining positive traction again and support prospects for a further near-term appreciating move.
However, it would still be prudent to wait for a sustained strength above the $33.00 level, or the 78.6% Fibo. level, before placing fresh bullish bets. XAG/USD might then accelerate the positive momentum towards the $33.20 area, en-route the next relevant hurdle near the $33.50-$33.55 area and the $34.00 area, or multi-month tops touched in March.
On the flip side, Friday’s swing lows, around the $32.10-$32.05 area, or the 61.8% Fibo. level might continue to act as an immediate support. Any further declines might be seen as a buying opportunity and remain limited near the $31.35-$31.30 area, or the 50% Fibo. level. However, a convincing break below might prompt technical selling and turn XAG/USD vulnerable.
Any further declines might then drag XAG/USD below the $31.00 round-figure mark, towards the $30.55 area, or the 38.2% Fibo. level. The downward trajectory could extend further towards the $30.00 psychological mark en-route the $29.55 region (23.6% Fibo.) The latter will act as a key pivot point, which if broken could shift the bias towards bearish traders.
Source: FXStreet
