Silver remains steady after a slight overnight pullback from a multi-year high but lacks a clear direction in early trading. The technical signals suggest that the price of silver (XAG/USD) is more likely to move higher.
Silver is trading in a tight range around $36.75 during Thursday’s Asian session. This range appears to hold after a small drop from the highest level seen since February 2012. Technical indicators support a bullish outlook, showing that the path of least resistance is upward.
A strong move above the $36.45-$36.50 range confirmed a breakout from a short-term downward trend, forming a bullish flag pattern. Additionally, the Relative Strength Index (RSI) has moved down from overbought levels, and other positive momentum indicators support a constructive near-term view for silver.
This suggests that silver could soon push past the $37.00 mark, aiming to retest the multi-year high near $37.30-$37.35, reached on Wednesday. If buying continues above the mid-$37 range or the February 2012 peak, silver could rise toward $38.00 and then challenge resistance around $38.50-$38.55.
On the downside, support may come from the 50-period Simple Moving Average (SMA) on the 4-hour chart near $36.55, followed by the previous breakout level around $36.30. Further support lies near the weekly low at $36.15 and the round $36.00 level. If silver falls below $36.00, it could weaken the bullish outlook and favor a bearish trend in the short term.
