Silver Price Forecast: XAG/USD looks set to rise further, towards the $31.00 mark

• The price of Silver reverses a decline in the Asian session and turns positive for the second consecutive day.
• The technical setup favors the bulls and supports prospects for further appreciation.
• Any significant decline could be seen as a buying opportunity near the $30.00 mark.

Silver price (XAG/USD) attracts some buying at lower levels near the $30.20 area during the Asian session on Tuesday and looks to consolidate the overnight bounce from near the 100 EMA on the 4-hour chart. However, the white metal retreats from a two-day high reached in the last hour and is currently trading around the $30.60-$30.55 region, up 0.25% on the day.

Looking at the bigger picture, the recent upward movement seen in the last four weeks or so, from the $28.75-$28.70 region or a multi-month low hit in December, has been along an ascending channel. This, coupled with the fact that the oscillators on the daily chart have started to gain positive traction, favors the XAG/USD bulls and supports the prospects of a near-term appreciating move towards the $31.00 mark.

A further move higher will likely face resistance near the upper boundary of the aforementioned channel, currently located near the $31.25 region. A sustained break above said barrier has the potential to lift XAG/USD towards the $32.00 mark, with some hurdles in between near the $31.45-$31.50 region. Momentum could extend further towards the December high, around the $32.25-$32.30 area.

On the other hand, the psychological mark of $30.00 – which comprises the 100 EMA on the 4-hour chart and the lower end of the ascending channel – could continue to act as immediate support. A convincing break below could shift the bias in favor of the bears and make , or the minimum of several months.

XAG/USD 4-hour chart