- The price of silver is struggling to gain significant traction and appears vulnerable to falling further.
- The overnight failure near the 100-day EMA supports the prospects for further losses.
- Sustained strengthening beyond the $30.50-$30.55 area will nullify the negative outlook.
The price of Silver (XAG/USD) rises during the Asian session on Tuesday, although it lacks bullish conviction and appears vulnerable to extending the previous day’s pullback decline from the vicinity of a four-week high. The white metal is currently trading around the $29.65 region, up 0.15% on the day.
From a technical perspective, Monday’s failure near the 100-day EMA suggests that the recent rally from the $28.80-$28.75 region has run out of steam and validates the negative outlook. That said, the mixed oscillators on the daily chart warrant some caution before opening new bearish positions around XAG/USD and positioning for further losses.
Meanwhile, the $30.00 psychological level now appears to act as an immediate hurdle ahead of the $30.50-30.55 region (100-day EMA). A sustained move beyond the latter could shift the short-term bias in favor of the bulls and lift XAG/USD beyond intermediate resistance near the $31.00 round figure, towards the next relevant barrier near the zone. from $31.35-$31.40.
On the other hand, weakness below the mid-$29.00 zone will reaffirm the bearish outlook and make XAG/USD vulnerable to retesting the $29.00 level before eventually falling to the $28.80-28.70 region. or a three-month low hit in December. The downward trajectory could further extend towards the $28.45-28.40 area en route towards the $28.00 level and the $27.70-27.65 support.
XAG/USD 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.
