silver prices have recently attracted interest from buyers in the $30.75 range, although the market sentiment remains uncertain. The current technical indicators suggest a cautious approach before making any significant trading decisions. A sustained movement above $32.00 could signal a renewed interest from bullish traders.
During the early European session on Tuesday, silver (XAG/USD) reversed a decline to trade near the upper end of its daily range, currently hovering just above $31.00, reflecting a decrease of 0.40% for the day. The asset has shown some resilience despite remaining below the 100-hour Simple Moving Average, indicating that traders should be wary of engaging aggressively in the current market.
The daily swing low around $30.75 now serves as a key level, acting as a buffer against potential downward movements. Should the price drop below the $30.35 – $30.25 zone, followed by the critical $30.00 level, bearish momentum could gain traction. A decisive break below the confluence of the 100-day and 50-day SMAs in the $29.85 – $29.75 range would further confirm this bearish outlook and could lead to deeper losses.
In the event of a significant decline, price targets could include $29.45 and $29.00, and further drops could extend to the $28.80 – $28.75 range. The trajectory might ultimately lead to testing the $28.00 level, with subsequent price action potentially probing the September monthly swing low around $27.70 – $27.65.
Conversely, if silver experiences upward momentum, it will likely face strong resistance near $31.50. A continuation of buying interest could allow prices to reclaim $32.00, with a further breakthrough at $32.25 potentially paving the way back toward the significant resistance level near the $33.00 level reached earlier this month.
