Silver (XAG/USD) is regaining traction in the market after a slight decline the previous day, climbing back above the $31.00 mark during the Asian trading session on Tuesday. Despite this recovery, the white metal remains below the $31.45 threshold—the highest level reached since July 17—though the technical indicators suggest a strong bias towards bullish sentiment among traders.
The recent breakout from a short-term descending trend line, combined with positive movement in daily oscillators, supports a bullish outlook for XAG/USD. There is a clear potential for prices to push beyond the monthly peak around $31.45, with an aim towards the July swing high near the $31.75 region.
Should this momentum continue, silver may target the $32.00 mark and extend further towards challenging a ten-year high in the mid-$32.00s achieved in May.
On the downside, the $30.70-$30.65 area appears to provide immediate support, with the overnight swing low around $30.35 serving as an additional protective level. A move towards the psychological $30.00 mark may still be viewed as a buying opportunity, reinforcing the support near the aforementioned trend-line resistance break at approximately $29.40-$29.35.
This trend line aligns with the 50-day Simple Moving Average (SMA) and is currently situated near the $29.00 mark, serving as a critical pivot point. A decisive breach below this level could shift market sentiment towards a bearish outlook, potentially leading to a more significant corrective decline for XAG/USD.
Related topics:
