Silver Price Forecast: XAG/USD flat lines around $38.00 as traders seem non-committed
- Silver stalls the overnight pullback from a multi-week high, though it lacks bullish conviction.
- Mixed technical indicators warrant some caution before placing aggressive directional bets.
- Acceptance below the 200-hour SMA should pave the way for some meaningful downfall.
Silver (XAG/USD) attracts some dip-buying during the Asian session on Friday and stalls the previous day’s retracement slide from the $38.70-$38.75 area, or a three-week high. The white metal climbs back above the $38.00 mark in the last hour, though it lacks bullish conviction.
The XAG/USD continues to show resilience below the 200-hour Simple Moving Average (SMA) and rebounds from the vicinity of a nearly two-week-old ascending channel support. That said, mixed oscillators on hourly/daily charts warrant some caution before placing fresh bullish bets around the commodity and resumption of the recent uptrend from the monthly low.
Hence, any subsequent move up is more likely to confront stiff resistance near the $38.20-$38.25 region. A sustained strength beyond the latter, however, should lift the XAG/USD to the $38.50-$38.55 intermediate hurdle en route to the multi-week top, around the $38.75 zone. The momentum could extend further and allow bulls to reclaim the $39.00 round-figure mark.
On the flip side, weakness below the $37.80 region could drag the XAG/USD to the next relevant support near mid-$37.00s en route to the $37.00 neighborhood. Some follow-through selling would be seen as a fresh trigger for bearish traders and set the stage for deeper losses, towards retesting the monthly swing low, around the $36.20 region.
Silver 1-hour chart
