Silver Price Analysis: XAG/USD holds steady around $28.00 mark, just below one-week tops
- Silver gained traction for the third consecutive session and climbed to one-week tops.
- The technical set-up favours bullish traders and supports prospects for further gains.
- Break below the $27.45-35 confluence support needed to negate the positive outlook.
Silver edged higher for the third consecutive session on Wednesday and climbed to one-week tops, around the $28.20-25 region during the first half of the trading action on Wednesday.
Looking at the technical picture, the XAG/USD attracted some dip-buying on Tuesday and defended an important confluence support near the $27.45-35 region. The mentioned area comprises an ascending trend-line extending from YTD lows and 100-period SMA on the 4-hour chart, which should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and have again started gaining positive traction on hourly charts. The set-up supports prospects for additional gains, though bulls are likely to wait for some follow-through buying beyond the $28.25-30 supply zone before positioning for any further appreciating move.
The XAG/USD might then aim to surpass an intermediate barrier near the $28.75 area (monthly swing highs) and climb further to reclaim the $29.00 round-figure mark. Some follow-through buying has the potential to push the white metal beyond the $29.30-35 region and allow bulls to make a fresh attempt to conquer the key $30.00 psychological mark.
On the flip side, any meaningful slide below the $28.00 mark might still be seen as a buying opportunity near the mentioned confluence support, currently around the $27.45 region. This is closely followed by support near the $27.20 area, which if broken might drag the XAG/USD below the $27.00 mark, towards testing 200-period SMA support near the $26.65 region.
XAG/USD 4-hour chart
Technical levels to watch