- Silver retreats after touching an over one-month peak during the Asian session on Friday.
- The technical setup favors bulls and warrants caution before confirming a near-term top.
- Corrective slides could be seen as buying opportunities and remain limited near $53.00.
Silver (XAG/USD) struggles to capitalize on the Asian session move up and retreats from the $54.40-$54.45 region, or its highest level since October 17, touched earlier this Friday. The white metal currently trades around mid-$53.00s, still up 0.20% for the day, and seems poised to register strong weekly gains.
From a technical perspective, the recent repeated failures to find acceptance and build on the momentum beyond the $54.40-$54.50 horizontal barrier, in turn, constitute the formation of multiple tops on the daily chart. However, oscillators on the said chart are holding in positive territory and warrant some caution before confirming that the XAG/USD has topped out in the near term.
Hence, any subsequent pullback below the $53.25 zone, or the Asian session low, is more likely to attract fresh buyers near the $53.00 round figure. This should help limit the downside for the XAG/USD near the overnight trough, around the $52.70-$52.65 region. A convincing break below the latter could prompt some technical selling and drag the white metal further towards the $52.00 mark.
On the flip side, the $54.20-$54.25 region might continue to act as an immediate hurdle, above which the XAG/USD could aim to retest the all-time peak, around the $54.70-$54.75 region, touched in October. Some follow-through buying, leading to a further strength beyond the $55.00 psychological mark, will be seen as a fresh trigger for bulls and pave the way for a further near-term appreciation.
Silver daily chart
