Precious Metal Holds Ground After Recent Rally as Traders Eye Key Resistance Levels
Silver (XAG/USD) traded sideways during Wednesday’s Asian session, stabilizing near $34.50 after retreating from overnight gains below $34.00. The commodity shows minimal daily movement while maintaining proximity to its year-to-date high established earlier this week.
Technical Outlook Remains Constructive
The precious metal’s decisive breakout above the $33.80 resistance level – which previously contained prices during a multi-week consolidation phase – has reinforced positive market sentiment. Technical indicators on daily charts continue flashing bullish signals without entering overbought territory, suggesting room for additional upside.
Critical Resistance Levels in Focus
Market analysts identify the $34.80-$34.90 range as the immediate technical hurdle, representing both the current yearly peak and highest price point since October 2024. A confirmed breach of this zone could propel silver toward $35.66 – the March 2012 high – with potential to test $36.00 levels not seen since February 2012.
Support Structure Provides Downside Protection
Technical support emerges initially at $34.00, with stronger buying interest expected near the former resistance-turned-support at $33.65. A sustained drop below this level might trigger extended declines toward the psychological $33.00 mark, followed by the substantial $32.70-$32.75 support band. Only a breakdown below this critical zone would signal potential trend reversal.
Market Positioning and Forward Outlook
The technical framework continues to favor silver bulls, contingent upon the metal maintaining its footing above key support levels. Traders remain watchful for either a breakout above multi-year resistance or potential profit-taking that could test the recent rally’s durability.
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