Silver Prices: XAG/USD remains depressed near $32.00; bullish bias remains

LONDON (February 6) Silver (XAG/USD) attracts some sellers following an intraday uptick on Thursday and snaps a three-day winning streak to a three-month top, around the $32.55 region touched the previous day. The white metal sticks to its intraday losses and currently trades near the lower end of its daily range, around the $32.00 mark, down 0.75% for the day. 

From a technical perspective, the recent breakout through the $31.00 confluence – comprising the 38.2% Fibonacci retracement level of the October-December fall and the 100-day Simple Moving Average (SMA) – was seen as a key trigger for bulls. A subsequent strength beyond the 50% retracement level, around the $31.70-$31.75 region, and positive oscillators on the daily chart validate the constructive setup. 

Hence, any further slide below the $31.75-$31.70 area, or the daily swing low, could be seen as a buying opportunity. This, in turn, should help limit the downside for the XAG/USD near the $31.00 resistance breakpoint, now turned support. A convincing break below the latter, however, could make the XAG/USD vulnerable to accelerate the fall toward the $30.25 support zone en route to the $30.00 psychological mark. 

On the flip side, the $32.55 area, or a multi-month peak touched on Wednesday, now seems to act as an immediate hurdle. Some follow-through buying should allow the XAG/USD to climb further towards reclaiming the $33.00 mark for the first time since early November. The said handle also represents the 61.8% Fibo. level, which if cleared decisively will set the stage for an extension of over a one-month-old uptrend.

FXStreet