Silver recovers further from multi-week low, climbs above mid-$32.00s
Silver (XAG/USD) builds on the previous day's goodish bounce from the $31.65 area, or a nearly three-week low, and gains some follow-through traction during the Asian session on Friday. The white metal climbs back above mid-$32.00s in the last hour and for now, seems to have snapped a three-day losing streak, though the technical setup warrants some caution before positioning for any further gains.
The overnight sustained breakdown below the 100-hour Simple Moving Average (SMA) was seen as a key trigger for bearish traders. Moreover, oscillators on daily/4-hour charts have been gaining negative traction and suggest that the path of least resistance for the XAG/USD is to the downside. Hence, any subsequent move up might still be seen as a selling opportunity and remain capped.
The $32.80 area could now act as an immediate barrier ahead of the $33.00 round-figure mark. Some follow-through buying, however, might trigger a short-covering move and lift the XAG/USD to the $33.70 hurdle. This is followed by the $34.00 round figure, which if cleared decisively would negate the near-term negative outlook and shift the bias in favor of bullish traders.
Source: Fxstreet
