Silver (XAG/USD) remains supported near the $33.00 level, despite a modest retreat from an earlier high of $33.20 in Asian trading. The pullback, currently about 0.30% lower intraday, comes after a strong upside move that confirmed a technical breakout through the upper edge of a descending channel.
This breakout follows multiple rebounds off the 100-day Simple Moving Average (SMA), reinforcing bullish sentiment and validating a bull flag formation — often seen as a continuation pattern in trending markets.
📊 Technical Setup: Pullbacks Likely to Attract Buyers
Tuesday’s daily close above $33.00 marks a pivotal moment for XAG/USD, suggesting the recent downtrend may have ended. Momentum indicators, including daily oscillators, are just beginning to push into positive territory — signaling that bulls may have regained control.
Immediate support levels:
- $32.65 – minor horizontal zone
- $32.00 – 100-day SMA
- $31.40 – former channel support
Should silver dip toward these zones, it is likely to attract buy-on-dip interest, particularly as long as the price holds above the $31.40 zone. A decisive drop below that level would negate the bullish outlook and potentially trigger a shift in sentiment.
📈 Upside Potential: Eyes on $34.00 and March Highs
If XAG/USD can regain upside traction and push beyond the $33.20 intraday peak, the next resistance stands near:
- $33.60 – short-term barrier
- $34.00 – round number resistance
- $34.55 – $34.60 – year-to-date high (March)
A sustained break above these levels would likely extend the bullish momentum, opening the door to fresh multi-month highs.
🧭 Summary: Bullish Trend Intact Above Key Moving Averages
As long as silver maintains its footing above the 100-day SMA, dips are likely to be viewed as buying opportunities. The breakout from the descending channel and flag formation supports the case for further gains.
Watch for:
- Strong defense of $32.65 support
- Momentum above $33.60 toward $34.55
- Bullish confirmation on daily close above $34.00
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