Silver Price Forecast: XAG/USD flirts with short-term trading range hurdle, above $37.00

• Silver adds to the previous day's strong move up and gains traction for the second straight day.
• A move beyond the $37.30-$37.35 area would set the stage for a further near-term appreciation.
• Any corrective pullback might be seen as a buying opportunity and is likely to remain cushioned.

Silver (XAG/USD) trades with a positive bias for the second straight day and tests the top end of a multi-week-old range during the Asian session on Friday. The white metal currently trades around the $37.20 region, up 0.40% for the day.

From a technical perspective, the daily Relative Strength Index (RSI, 14) remains above 50, while the Moving Average Convergence Divergence (MACD) histogram and the signal line are yet to confirm bullish bias. This makes it prudent to wait for some follow-through buying beyond the $37.30-$37.35 region, or the highest since February 2012 touched last month, before placing fresh bullish bets around the XAG/USD.

The subsequent move up would increase the likelihood of additional gains towards the $38.00 round figure. The next relevant hurdle is pegged near the $38.35-$38.40 region, above which the XAG/USD could extend the momentum towards reclaiming the $39.00 mark for the first time since September 2011.

On the flip side, any corrective pullback below the $37.00 round figure could be seen as a buying opportunity and remain limited near the $36.50-$36.45 area. Some follow-through selling could drag the XAG/USD back closer to the $36.00 mark, which, if broken decisively, should pave the way for a slide towards the $35.50-$35.40 horizontal zone, representing the lower boundary of the short-term trading range.

A convincing break below the latter might then shift the near-term bias back in favor of bearish traders. The XAG/USD might then accelerate the fall towards the $35.00 psychological mark en route to $34.75 intermediate support before eventually dropping to the $34.45 region.

Silver daily chart