Silver (XAG/USD) struggles to capitalize on the previous day's goodish rebound from the $31.25 area, or over a one-week low, and oscillates in a narrow band through the first half of the European session on Wednesday. The white metal currently trades below the $32.00 mark, unchanged for the day, as traders opt to wait for the release of the US consumer inflation figures before placing directional bets.

From a technical perspective, the recent breakout through the 100-day Simple Moving Average (SMA) and positive oscillators on the daily chart suggests that the path of least resistance for the XAG/USD is to the upside. That said, repeated failures to find acceptance and build on momentum beyond the $32.30 resistance warrant some caution for bullish traders. A sustained strength beyond the latter, however, will reaffirm the constructive setup and pave the way for additional near-term gains.

The XAG/USD might then aim to surpass the monthly swing high, around the $32.65 zone, which coincides with the 61.% Fibonacci retracement level of the October-December fall, and reclaim the $33.00 round figure for the first time since early November. The momentum could extend further towards the next relevant hurdle near the $33.50 area, above which the white metal could climb to the $34.00 mark en route to the $34.45 zone and the $35.00 neighborhood, or the multi-year peak touched in October. 

On the flip side, the overnight swing low, around the $31.25 area, or the 100-day SMA, might continue to act as an immediate strong support for the XAG/USD. Some follow-through selling, leading to a subsequent slide below the $31.00 mark, might shift the near-term bias in favor of bearish traders and pave the way for deeper losses. Silver might then decline further towards the $30.25 region (23.6% Fibo. level) en route to the $30.00 psychological mark and the $29.55-$29.50 horizontal support.

Silver daily chart

(Click on image to enlarge)

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