silver has attracted new buyers, recovering from a recent decline and showing positive momentum in the market. As traders observe the technical indicators, the outlook appears bullish, suggesting the potential for further gains. A decline below the $30.00 level could create a favorable buying opportunity, offering support for the commodity.
Trading during the Asian session has seen silver (XAG/USD) regain traction, distancing itself from a recent low of about $29.70 reached the previous day. Currently, the price is oscillating between $30.35 and $30.40, reflecting an increase of nearly 1% for the day. This movement suggests the potential for continued appreciation in the near term.
The recent breakout above the $29.35 level, which includes a short-term descending trend line and the 100-day Simple Moving Average (SMA), along with renewed buying interest, supports a positive outlook for silver . Technical indicators on the daily chart remain in a healthy position, not yet nearing overbought territory. Consequently, the prevailing direction for silver appears to be upwards.
Should prices continue to climb, resistance is anticipated around the $30.65 to $30.70 range. A breakthrough here could see silver targeting the $31.00 level, with further momentum potentially driving prices toward the recent swing high near $31.30-$31.25. Continued buying could support a rise to approximately $31.45, heading towards the July peak at around $31.75, with $32.00 within reach.
Conversely, if silver dips below the psychological $30.00 mark, it may still present a buying opportunity, as support is expected to hold near the previously mentioned $29.35 level. A decisive break below this support could lead to a decline below $29.00, with further downside targets at $28.45-$28.40, and eventually toward the $28.00 level.
