silver prices have recently shown renewed strength, staying close to a multi-week peak reached on Monday. The recent movement beyond the 200-day Simple Moving Average (SMA) has shifted market sentiment, creating a bullish outlook. However, any significant decline below the $28.80 – $28.75 price range would negate this positive sentiment.
During the Asian session on Tuesday, silver (XAG/USD) bounced back from a brief pullback and managed to reclaim the $30.00 psychological level. This recovery underscores a favorable technical setup for bullish investors, suggesting the potential for further upward momentum in silver prices.
Following a rebound from the $28.80 – $28.75 range, which marked a multi-month low in December, the recent ability to stay above the 200-day SMA reinforces an optimistic outlook for silver . Technical indicators on the daily chart indicate that momentum is shifting positively, with expectations pointing toward further price increases.
For the silver market to maintain its bullish trajectory, sustained buying above Monday’s peak near the $30.35 level is essential. Achieving this could push prices beyond the $30.50 resistance and toward the $31.00 level. A critical supply zone is identified around $31.15 – $31.20; if this area is surpassed, it may indicate the end of the downtrend that began when prices were around $35.00 in October.
Conversely, potential pullbacks toward the $29.50 – $29.40 range are likely to be perceived as optimal buying opportunities. This zone should help contain declines above $29.10 – $29.00. A breach of the $28.80 – $28.75 level would signal a shift in market behavior, potentially leading to deeper price declines.
