Oct 2 2024, 11:02
Silver (XAG/USD) struggles to capitalize on the previous day’s positive move and oscillates in a narrow trading band, below mid-$31.00s during the Asian session on Wednesday. The white metal, meanwhile, remains close to the weekly low touched on Monday, though the setup favors bullish traders and supports prospects for the resumption of the uptrend from the September swing low.
The XAG/USD is holding comfortably above technically significant 100-day and 200-day Simple Moving Averages (SMA). This, along with the recent breakout through a short-term descending trend-line resistance and positive oscillators on the daily chart, validates the positive outlook and suggests that the path of least resistance for the XAG/USD is to the upside. Hence, some follow-through strength towards the $31.80 horizontal zone, en route to the $32.00 mark, looks like a distinct possibility.
A sustained strength beyond the latter could push the XAG/USD beyond the $32.25 intermediate hurdle, towards challenging the multi-year peak, around the $32.70 region touched last week. The subsequent move up will be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move.
On the flip side, the $31.00 round figure now seems to act as immediate support ahead of the $30.90-$30.85 region, or the weekly low. The subsequent downfall has the potential to drag the XAG/USD further towards the $30.25 support zone. This is followed by the $30.00 psychological mark and the 100-day SMA support near the $29.80-$29.65 region. A convincing break below the latter might shift the bias in favor of bearish traders and pave the way for a further depreciating move.(ayu)
Source: FXstreet
