Silver Price Analysis: XAG/USD climbs closer to mid-$30.00s, seems poised to appreciate further

• Silver attracts fresh buyers on Wednesday and reverses a part of the overnight retracement slide.
• The technical setup favors bullish traders and supports prospects for a further appreciating move.
• Weakness below the $30.00 mark could be seen as a buying opportunity and remain cushioned.

Silver (XAG/USD) regains positive traction during the Asian session on Thursday and moves further away from the weekly low, around the $29.70 area touched the previous day. The white metal currently trades around the $30.35-$30.40 region, up nearly 1% for the day, and seems poised to appreciate further.

The recent breakout through the $29.35 confluence – comprising a short-term descending trend-line and the 100-day Simple Moving Average (SMA) – and the emergence of dip-buying on Thursday validate the positive outlook. Moreover, oscillators on the daily chart are holding in positive territory and are still far from being in the overbought zone. This, in turn, suggests that that the path of least resistance for the XAG/USD is to the upside. 

From current levels, any subsequent move up is likely to confront some resistance near the $30.65-30.70 horizontal zone, above which the XAG/USD could aim to reclaim the $31.00 mark. The momentum could extend further towards the overnight swing high, around the $31.30-$31.25 region. Some follow-through buying could lift the commodity to the $31.45 region en route to the July swing high, around the $31.75 zone, and the $32.00 mark.

On the flip side, weakness below the $30.00 psychological mark might still be seen as a buying opportunity and remain limited near the aforementioned confluence resistance breakpoint, now turned support near the $29.35 region. The latter should act as a pivotal point, which if broken decisively could drag the XAG/USD below the $29.00 round figure, towards the $28.45-$28.40 intermediate support en route to the $28.00 mark.

Silver daily chart