Silver Price Forecast: XAG/USD bulls have the upper hand while above $49.35 pivotal support

• Silver attracts some dip-buying following a modest Asian session dip to sub-$50.00 levels.
• Neutral oscillators on 4-hour/daily charts warrant caution before placing directional bets.
• A convincing break below the $49.35 pivotal support would pave the way for deeper losses.

Silver (XAG/USD) reverses a modest Asian session dip to levels below the $50.00 psychological mark and looks to build on the previous day's bounce from an over one-week low. The white metal currently trades around the $50.80 region, nearly unchanged for the day, and could climb further while above the 100-period Simple Moving Average (SMA) on the 4-hour chart.

From a technical perspective, the overnight swing low, around the $49.35 region, coincides with the 100-period SMA on the 4-hour chart and should act as a key pivotal point. That said, neutral oscillators on 4-hour/daily charts make it prudent to wait for a convincing break below the said support before positioning for an extension of the XAG/USD pair's pullback from a nearly four-week high, touched last Thursday.

The white metal might then weaken below the $49.00 round figure and drop to the next relevant support near the mid-$48.00s. The downward trajectory could extend further and make the XAG/USD vulnerable to test sub-$48.00 levels. The subsequent decline would expose the $47.15-$47.10 intermediate support before the commodity eventually drops to the $46.55-$46.50 region en route to the $46.00 mark.

On the flip side, any further move up is likely to confront some resistance near the $51.00 mark. Some follow-through buying beyond the $51.15 horizontal barrier could allow the XAG/USD pair to climb further towards the $52.00 round figure. The momentum could extend to the $52.35 horizontal support breakpoint, which, if cleared, would be seen as a fresh trigger for bulls and pave the way for additional gains.

Silver 4-hour chart