Silver Price Forecast: XAG/USD bulls flirt with trend-line resistance around $38.20 area
- Silver scales higher for the second straight day and tests the descending trend-line hurdle.
- The technical setup backs the case for an eventual breakout through the said barrier.
- Any corrective pullback below $38.00 is likely to be bought into and remain cushioned.
Silver (XAG/USD) gains positive traction for the second consecutive day and builds on the momentum beyond the $38.00 mark during the Asian session on Wednesday. The white metal currently trades around the $38.20 region, up over 0.70% for the day, and flirts with a descending trend-line resistance extending from a multi-year peak touched in July.
Given this week’s repeated rebounds from the 200-hour Simple Moving Average (SMA) pivotal support, a sustained strength beyond the said barrier will be seen as a fresh trigger for the XAG/USD bulls. This, in turn, will set the stage for a further near-term appreciating move amid positive oscillators on daily/hourly charts. The subsequent move up could lift the white metal to the next relevant hurdle near the $38.70 area en route to the $39.00 round figure. The momentum could extend further towards the $39.50 area, or the highest since February 2012, set last month.
On the flip side, acceptance below the $38.00 mark and a further slide below the Asian session trough, around the $37.85 region, will reaffirm the trend-line resistance. The XAG/USD might then turn the overnight swing low, around mid-$37.00s, before declining further towards the $37.15-$37.10 strong horizontal resistance breakpoint. Some follow-through selling below the $37.00 round figure might shift the bias in favor of bearish traders and pave the way for a further depreciating move, towards retesting last week’s swing low, around the $36.20 region.
Silver 1-hour chart
