Silver scaled higher for the third consecutive session on Friday and jumped to over one-week tops.
Bulls now await a sustained move beyond the $28.30 region before positioning for any longer gains.
Silver built on the previous day’s goodish bounce from weekly lows and gained some follow-through traction on the last trading day of the week. This marked the third consecutive day of a positive move and pushed the commodity to one-and-half-week tops, round the $28.25-30 area during the first European session.
The mentioned region marks an important supply zone and coincides with a short-term ascending trend-line support breakpoint. A sustained move beyond are going to be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent bounce from the vicinity of the $27.00 mark, or monthly lows touched last Thursday.
Meanwhile, technical indicators on the daily chart are holding comfortably within the bullish territory and support prospects for extra gains. That said, oscillators on hourly charts are already flashing slightly overbought conditions and warrant some caution before positioning for any longer appreciating move.
Hence, bulls are likely to attend for a few follow-through buying beyond the $28.25-30 confluence hurdle. Sustained strength above has the potential to push the XAG/USD towards monthly tops, round the $28.75 region, en-route the $29.00 mark. subsequent relevant barrier is pegged near the $29.40-50 region before the key $30.00 psychological mark.