Silver attracts some buyers near the 100-day SMA pivotal support on Friday.
The setup favors support prospects for a breakdown below the said support.
Any further move up could be seen as a selling opportunity and remain capped.
Silver (XAG/USD) defends the 100-day Simple Moving Average (SMA) support and stages a modest recovery from a four-week low touched during the Asian session on Friday. The white metal currently trades around the $31.35 region, up over 0.30% for the day, though it lacks follow-through buying as traders keenly await the release of the US Personal Consumption Expenditure (PCE) Price Index.
From a technical perspective, oscillators on the daily chart have been gaining negative traction and support prospects for an extension of over a one-week-old downtrend. That said, it will still be prudent to wait for a convincing break below the 100-day SMA support, currently pegged near the $31.15 region, before positioning for further losses. The XAG/USD might then weaken below the $31.00 mark, towards the next relevant support near the $30.25 region.
The downward trajectory could extend further towards the $30.00 psychological mark, which if broken decisively will suggest that the XAG/USD has topped out in the near term and pave the way for a further depreciating move. The subsequent downfall has the potential to drag the white metal towards the $29.55-$29.50 horizontal support en route to the $29.00 round figure and December 2024 swing low, around the $28.80-$28.75 area.
On the flip side, any further move up is likely to confront some resistance near the $31.65 region ahead of the overnight swing high, around the $32.00 neighborhood. A sustained strength beyond the latter could trigger a short-covering rally and lift the XAG/USD to the $32.40-$32.45 hurdle. Bulls might then make a fresh attempt to conquer the $33.00 mark before aiming to test the monthly swing high, around the $33.40 area touched on February 14.
Silver daily chart
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