SILVER PRICE PREDICTION: XAG/USD BULLS HAVE THE UPPER HAND WHILE ABOVE $29.20 CONFLUENCE
- Silver drifts lower on Thursday, albeit holds above the $29.20 confluence hurdle breakpoint.
- The technical setup favors bulls and supports prospects for the emergence of some dip-buying.
- A sustained move beyond the $30.00 mark will set the stage for a further appreciating move.
Silver (XAG/USD) attracts some sellers during the Asian session on Thursday and reverses a major part of the previous day's positive move. The white metal, however, manages to hold above the 50-day Simple Moving Average (SMA) and currently trades around mid-$29.00s, down 0.40% for the day.
The 50-day SMA, currently pegged near the $29.20 region, coincides with the 50% Fibonacci retracement level of the July-August decline and should act as a key pivotal point for the XAG/USD. Against the backdrop of Tuesday's failure near the $30.00 psychological mark, a convincing break below the said confluence might prompt some technical selling and pave the way for deeper losses.
The XAG/USD might then weaken further below the $29.00 round figure, towards testing the 38.2% Fibo. level support near the $28.55 region. Some follow-through selling has the potential to drag the white metal towards the $28.00 mark, below which the downward trajectory could extend further towards the $27.25 region en route to the next relevant support near the $27.00 round-figure mark.
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