Silver Price Outlook: XAG/USD Holds Near $33.00 as Bullish Pattern Signals More Upside

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.

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📊 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.

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📈 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.

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🧭 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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