- Silver prices climb after testing support near $31.90.
- Price action remains range-bound with key levels in focus.
- The potential harami candle on the weekly chart highlights market indecision and softening bearish momentum.
Silver prices are exhibiting a rebound from prior session lows, bolstered by renewed purchasing activity observed at key technical support thresholds.
As of this writing, the XAG/USD pair is trading higher by 0.90% on the day, hovering around $32.53, following a brief descent below the 100-day Simple Moving Average (SMA) which sits at $31.90. This intraday low tested the resolve of silver bulls, but the price has since recovered.
This upward movement reflects a resurgence in buying interest, although the broader market sentiment remains largely consolidative. Market participants are currently evaluating a mixed bag of United States (US) economic data releases, including recent inflation figures and employment reports, alongside evolving expectations concerning the Federal Reserve (Fed) policy trajectory. The uncertainty surrounding the timing and magnitude of potential interest rate adjustments by the Fed is contributing to Silver’s confinement within a well-defined trading range. Recent comments from Fed officials have further fueled this uncertainty, as policymakers express differing views on the appropriate path forward.
Silver bounces off support as buyers regain control
Analyzing the daily chart, the current candlestick formation displays a small real body positioned near the upper end of a pronounced lower wick – a textbook indication of intraday selling pressure that was ultimately met with resistance and subsequently rejected by buyers. This pattern suggests a potential shift in momentum, albeit one that requires further confirmation.
Buyers strategically intervened at the 100-day SMA, effectively reversing the earlier decline and propelling prices back towards the session’s opening level. While this action does not definitively signal a bullish reversal, it underscores the presence of robust demand at these lower price levels. The observed candle formation is indicative of a defensive posture adopted by buyers, rather than a conclusive indication of a broader trend reversal. However, with the current trading day still underway, a confirmed closing price above a key resistance level is necessary to validate the significance of this upward move and solidify the bullish sentiment. Traders are closely watching for a sustained break above the $32.75 level, which could pave the way for further gains.
