- Silver’s uptrend continues as solid resistance emerges at $30.70-$30.90.
- A break above $31.00 could lead to further gains, targeting $31.54, $31.75 and the yearly high at $32.51.
- Sellers need to push prices below $29.86 for a bearish turnaround and challenge lower support levels.
Silver prices rose modestly on Monday afternoon, boosted by a weaker US dollar and a drop in US Treasury yields. Speculation that the Federal Reserve would cut rates by 50 basis points (bps) weighed on the dollar and yields. XAG/USD is trading at $30.75, extending its winning streak to six days.
XAG/USD Technical Outlook
Silver’s uptrend remains intact after six days of continuous gains, although the grey metal faces stiff resistance at a descending resistance trend line drawn from the May-July highs passing around $30.70-$30.90.
Momentum is favoring buyers, as shown by the Relative Strength Index (RSI). However, it has started to flatten out, suggesting consolidation is on the way.
XAG/USD needs to break above $31.00 for a bullish continuation. A decisive break would expose the June 7 high at $31.54, followed by the July 11 peak at $31.75. On further strength, the next stop would be $32.00, ahead of the yearly high at $32.51.
On the contrary, sellers need to push prices below the September 13 low of $29.86 to challenge lower prices.
XAG/USD Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
