Silver Price Prediction: XAG/USD might continue to face stiff resistance near $28.00

• Silver attracts some buying on Thursday and recovers further from the weekly low.
• The technical setup warrants caution before positioning for any further move up.
• A sustained move beyond the $28.00 mark is needed to negate the negative bias.

Silver (XAG/USD) gains some positive traction during the Asian session on Thursday and builds on the overnight bounce from the $27.20-$27.15 region, or the weekly low. The white metal currently trades around the $27.70 area, up 0.40% for the day, and for now, seems to have snapped a two-day losing streak.

From a technical perspective, this week's repeated failures near the 100-period Simple Moving Average (SMA) hurdle on the 4-hour chart, currently pegged near the $28.00 mark, warrant some caution for bullish traders. Furthermore, neutral oscillators on the said chart make it prudent to wait for strong follow-through buying before positioning for an extension of the recent bounce from the $26.45 area, or over a three-month low touched last week. 

The XAG/USD might then climb to 38.2% Fibo. level, around the $28.45 region, before aiming to reclaim the $29.00 mark. The latter coincides with the 50% Fibo. level and is followed by the monthly swing high, around the $29.20 area, which if cleared decisively will be seen as a fresh trigger for bullish traders. The subsequent move up could lift the white metal further towards the $29.70 resistance en route to the $30.00 psychological mark. 

On the flip side, the overnight swing low, around the $27.20-$27.15 region, now seems to protect the immediate downside ahead of the $27.00 round figure. Some follow-through selling might expose the multi-month low, around the $26.45 area, below which the XAG/USD could slide to the $26.00 mark. The downward trajectory could extend further towards the next relevant support near the $25.60 horizontal zone en route to the $25.00 psychological mark.

Silver 4-hour chart