On Thursday, silver earned some follow-through traction for the second session in a row.
A sustained advance above the $26.30 supply zone should open the door to more gains.
Aggressive bullish traders should be wary of mixed technical signs on the daily chart.
On Thursday, silver built on the previous day’s gains and earned some follow-through traction for the second session in a row. The XAG/USD rallied to reach two-week highs, bringing it closer to the $26.25-30 supply zone.
This comes after the XAG/USD managed to hold its ground below the $25.70 confluence support, which includes the 200-day SMA and the 61.8 percent Fibonacci level of the $23.78-$28.75 rise up. As a result, some follow-through buying will be viewed as a new trigger for optimistic traders, paving the way for further increases.
Meanwhile, technical indicators on the daily chart have yet to show a bullish bias, despite the fact that they have recovered from negative territory. Investors may be hesitant to make any bold wagers ahead of Friday’s US monthly jobs report, so proceed with care before planning for a runaway gain.
A sustained move beyond the aforesaid barrier, however, has the ability to boost the XAG/USD above the $26.55-60 immediate hurdle and towards the 38.2 percent Fibo, which is around the $26.85 zone. The next relevant obstacle is at the mid-$27.00s, or the 23.6 percent Fibo. level, above which the next relevant hurdle is pegged near the mid-$27.00s, or the 23.6 percent Fibo. level.
Any major pullback below $26.00, on the other hand, might find strong support near the $25.70 level, ahead of weekly swing lows in the mid-$25.00s. A decisive breach below might make the XAG/USD vulnerable, allowing it to tumble towards the important $25.00 psychological level./n
