- Silver gained traction for the second consecutive session on Monday and climbed to multi-day tops.
- The set-up favours bullish traders and supports prospects for a move beyond the $27.80 resistance.
- Only a sustained break below the $27.00 mark will negate the constructive outlook for the metal.
Silver edged higher for the second consecutive session on Monday and was seen trading near four-day tops, around the $27.65-70 region during the mid-European session. The white metal has now moved back closer to last week’s swing highs, around the $27.80 region, which if cleared decisively should pave the way for additional gains.
Meanwhile, technical indicators on intraday/daily have been gaining positive traction and support prospects for a further near-term appreciating move. Hence, a subsequent strength beyond the $28.00 round-figure mark, towards testing the next relevant hurdle near the $28.40-50 region, now looks a distinct possibility.
Some follow-through buying has the potential to push the XAG/USD further the recent daily closing highs, around the $29.00 level. The momentum could get extended towards the $29.50 level and $29.80-85 region (2020 swing highs) intermediate hurdles, en-route the $30.00 psychological mark, or multi-year tops touched earlier this month.
On the flip side, the $27.30-20 region now seems to protect the immediate downside. Any further downfall might be seen as a buying opportunity and remain limited by horizontal support near the $27.00 mark. Failure to defend the mentioned support levels will negate the bullish outlook and prompt some aggressive technical selling.
XAG/USD daily chart
Technical levels to watch
