Silver (XAG/USD) edged lower on Wednesday, retreating modestly after reaching a one-week high near $33.20 during the Asian session. The precious metal is currently trading around $33.00, down approximately 0.30% on the day, though technical indicators continue to point to a bullish outlook.
Tuesday’s decisive close above the $33.00 threshold confirmed a breakout from the upper boundary of a multi-week descending channel, marking the completion of a bullish flag formation. This bullish breakout is further supported by repeated rebounds from the 100-day Simple Moving Average (SMA), reinforcing a constructive technical setup. Daily chart oscillators have begun to shift into positive territory, suggesting the path of least resistance remains upward.
Any near-term downside is expected to attract buying interest near the $32.65 horizontal support zone. A deeper correction could expose the 100-day SMA, situated just above the $32.00 mark, with a more pronounced decline potentially dragging the metal toward the channel support around $31.40. A sustained break below this level would invalidate the bullish scenario and shift sentiment in favor of sellers.
On the upside, renewed momentum beyond the $33.20 intraday peak could encounter initial resistance around the $33.60 level. A clear break above that zone would open the door for a move toward the psychological $34.00 mark. Continued bullish momentum could ultimately push silver toward its year-to-date highs in the $34.55–$34.60 range, last seen in March.
While silver faces minor intraday pressure, the broader technical outlook remains favorable for bulls, with dips likely to be viewed as buying opportunities.
