silver has demonstrated a positive turn after a minor dip experienced during the Asian trading session, marking its second consecutive day of gains. The prevailing technical conditions appear to be favoring bullish sentiment among traders, creating an environment where any significant pullbacks could present viable buying opportunities, particularly near the $30.00 level.
During morning trading on Tuesday, silver (XAG/USD) found support around the $30.20 level and is attempting to capitalize on the previous night’s rebound from the vicinity of the 100-period Exponential Moving Average (EMA) on the four-hour chart. Although the metal peaked at a two-day high recently, it has since settled around the $30.60 to $30.55 range, reflecting a 0.25% increase for the day.
Analyzing the broader trend, silver has shown a notable uptrend over the past month, recovering from a multi-month low that occurred around $28.75 to $28.70. This upward movement has developed within a defined ascending channel. Additionally, oscillators on the daily chart are beginning to exhibit positive momentum, which enhances the likelihood of further gains for XAG/USD as it approaches the anticipated target around $31.00.
Should the price advance, it may encounter resistance close to the upper boundary of the channel, situated near $31.25. A decisive breakout above this level could propel silver prices toward the $32.00 level, although traders should watch for potential resistance in the $31.45 to $31.50 range. Success in this upward trajectory may eventually lead to challenges at the December swing high around $32.25 to $32.30.
Conversely, the $30.00 level, representing both a psychological support and the 100-period EMA, is critical for maintaining bullish momentum. A decisive breach below this level could shift sentiment toward bearish traders, potentially pushing XAG/USD down to the $29.50 area and possibly even to the $28.75 – $28.70 range.
