Silver (XAG/USD) has managed to reclaim the $30.00 mark, which drew some buying interest for the second consecutive day. However, despite the recent bounce, the overall technical setup suggests caution for bullish traders. The price has been following a well-established downtrend, marked by a descending channel since the October highs near $35.00. Oscillators on the daily chart still haven’t bounced back with strong positive momentum even if it’s rebounding from bearish territory; thus, any upward momentum might be challenged. The most important levels of interest will be at $30.45, then the 100-day Simple Moving Average at around $31.00. A strong thrust above those will probably terminate the recent correction and set it in motion towards higher gains. Conversely, failure to overcome these obstacles could again push XAG/USD lower down with renewed force, particularly if mid-$29.00s support gives way.
KEY LOOKOUTS
• XAG/USD resistance is seen at $30.45, at the top of the descending channel and a level where an upside breakout or reversal can occur.
• The 100-day SMA stands at $31.00 and is also acting as a level of resistance, suggesting more price appreciation is likely if broken.
• The mid-$29.00s offers initial support; a breakdown below there could be the catalyst for a fresh leg lower, to $28.75-$28.70.
Silver (XAG/USD) has reclaimed the $30.00 level but the technical perspective is still not optimistic. Resistance is seen close to $30.45-the top of the descending channel-while further barriers are seen in the 100-day SMA near $31.00. A sustained break above those levels could reverse the trend. However, failure to clear these resistance levels and a dip below the mid-$29.00s support could lead to renewed downside pressure, making it important for traders to monitor these key levels closely.
Silver (XAG/USD) is testing resistance near $30.45 and the 100-day SMA at $31.00. A break above these levels could signal further upside, while support at mid-$29.00s remains crucial for downside risk.
• XAG/USD is capped on the upside around $30.45, the upper side of the falling channel.
• The 100-day Simple Moving Average at $31.00 is a next key resistance level for silver.
• A support level exists around the mid-$29.00s. A break below this level might signal further downward momentum.
• The price remains in a falling channel, signifying a trend well established, and little room for short-term upside.
• Daily chart oscillators have come out of bearish territory but do not have strong bullish momentum.
• Break above $31.00 could signal the end of the corrective decline and open up more upside.
• Drop below mid-$29.00s support would confirm further weakness, with a potential target of $28.75-$28.70 support
Silver (XAG/USD) has managed to recover above the $30.00 mark, attracting buying interest for the second consecutive day. However, the technical setup should warn the bullish traders. The price has been in a channel, breaking down since the October peak near $35.00. So, the downtrend is rather solid. The latest uptick was neutral for the oscillators on the daily chart, and there was no strong bullish momentum. The price has approached resistance near $30.45, at which the upper boundary of the descending channel was met. Another obstacle lies close to the 100-day Simple Moving Average at $31.00, which may become an important barrier in case of further upside.
Should silver be able to break through the resistance levels outlined above, this could be an indication that the corrective phase has ended and opens the way for further increases. Targets are likely to remain at $31.70 and the $32.00 mark, but the December swing high around $32.30-$32.35 is the final resistance. Downside support could be found immediately in the mid-$29.00s and a break of this level will lead to increased selling pressure again. In such a case, silver is expected to test levels around $28.75-$28.70, confirming additional downward momentum. Traders should pay close attention to these technical levels to identify the next possible move in XAG/USD.
TECHNICAL ANALYSIS
Silver (XAG/USD) has reclaimed the $30.00 level, which is a short-term bounce, but the overall technical view is to be cautious. The price is testing resistance at the upper boundary of the descending channel near $30.45, which has been a consistent barrier since the October highs. This channel indicates a well-established downtrend, thus limiting the upside potential in the near term. Oscillators on the daily chart have recovered from bearish territory but remain neutral, which suggests that silver lacks strong bullish momentum. The 100-day Simple Moving Average (SMA), currently just above $31.00, will be an important resistance point. A break and sustained move above $31.00 would indicate the end of the corrective decline and open the door for further upside, potentially targeting the $31.70 level and the $32.00 mark. On the downside, immediate support is found around the mid-$29.00s, specifically from Monday’s low. A break below this support level could reinforce the bearish setup and send silver prices back toward the $28.75-$28.70 region, marking the December lows.
XAG/USD Daily Price Chart
Sources: TradingView, Prepared by ELLYANA
FORECAST
Silver (XAG/USD) may remain bullish if the price can penetrate the resistance area. The immediate strong resistance stands at $30.45, the top side of the descending channel. If silver prices break through this level, the next one is at the 100-day Simple Moving Average (SMA) around $31.00. A break above $31.00 would be a sign that the corrective decline might be ending and could lead to further upside, with the $31.70 and $32.00 levels the next targets of interest, and the December swing high near $32.30-$32.35 the next significant resistance.
The downside support in the mid-$29.00s is present and a break below this region will reinforce the bearish sentiment. Silver might drift toward the $28.75-$28.70 zone, which are the December lows. Pressure below this support level may further indicate that the broader downtrend is intact and that it can test even lower levels. A sustained break below $28.70 may open up the gates for deeper losses and confirm a more prolonged bearish phase.
