Silver, XAG/USD, maintains its upward trajectory, trading near the weekly high in the mid-$30.00s, and technical indicators suggest further growth. The metal is facing key resistance at $31.00, aligned with the 100-day SMA. A break above this point could trigger a rally towards $31.50 and $32.30. A sustained move above these levels would confirm that the recent correction from its multi-year peak in October 2024 has actually ended, leading to further upside. However, powerful support remains at the 200-day SMA near $30.00 and a breakdown below here could leave silver susceptible to further downside risks, potentially re-testing the $29.00 area.

KEY LOOKOUTS

• Silver faces strong resistance near the 100-day SMA at $31.00. A decisive breakout above this level could trigger a rally towards $31.50 and the $32.30 region.

• The 200-day SMA near the $30.00 psychological mark acts as a crucial support. A break below this level could push silver toward the $29.00 region, intensifying bearish pressure.

• Technical indicators are showing renewed positive traction. If buyers can hold the reins, silver may continue to rally, marking the end of its corrective decline from its October 2024 peak.

• A sustained move above key resistance levels may trigger short-covering rallies, leading to further upside movement, with the next targets set around $32.00 and the December swing high of $32.30.

Silver (XAG/USD) remains bullish, trading near its weekly highs in the mid-$30.00s. A major resistance level at $31.00, coinciding with the 100-day SMA, is a critical barrier; a strong breakout above this level may propel the price towards $31.50 and the $32.30 area. On the downside, significant support at the 200-day SMA around $30.00 acts as an important cushion to bulls, while a breach of the low might place silver vulnerable to further selloffs to the $29.00 region. Technically, some positive momentum in indicators implies the corrective drop from the multi-year peak in October 2024 might have bottomed out. A sustained push above resistance could fuel short-covering rallies, reinforcing the bullish outlook for silver in the near term.

Silver (XAG/USD) trades with a bullish bias near its weekly highs, facing key resistance at $31.00. A breakout could trigger a rally towards $31.50 and $32.30, while strong support at $30.00 may prevent further declines. Technical indicators suggest renewed bullish momentum, hinting at potential short-covering rallies.

• Silver continues to rise, trading near the weekly high in the mid-$30.00s with positive technical signals.

• The 100-day SMA at $31.00 is a key level; a breakout could drive prices toward $31.50 and $32.30.

• The 200-day SMA near $30.00 remains strong support; a break below this level could expose silver to further downside risk.

• A breakthrough above resistance might lead to short-covering, pushing the advance toward multi-month highs.

• If silver can reach $31.50 or higher, then key points will be $32.00 and the high from December at $32.30.

• A break beneath the low of the week around $29.70 might continue the downside toward $29.10 and $28.70, a multi-month low from December.

•Chart indicators in daily time frames indicate gaining bullish momentum; the corrective phase most likely is already over. Further upside is possible.

Silver (XAG/USD) maintains a positive sentiment and trades higher towards its weekly high in the mid-$30.00s. The metal has a crucial resistance area at $31.00, marked by the 100-day SMA. The metal’s potential to break above $31.00 and trigger further upside toward $31.50 and the December high $32.30 could be realized. Technical indicators on the daily chart are gaining positive momentum, reinforcing the bullish outlook. A successful breakout above these levels would indicate that the recent corrective decline from its October 2024 peak has run its course, paving the way for additional upside movement.

XAG/USD Daily Chart

TradingView Prepared by ELLYANA

On the downside, strong support lies at the 200-day SMA, near the $30.00 psychological level. A breakdown through this support will increase bearish pressure, threatening silver with deeper losses toward $29.70 and potentially $28.70-a multi-month low hit in December. Traders should watch these important levels closely, as price action near them will define the metal’s next big move. In general, silver’s technical is bullish, as short-covering rallies are possible when resistance levels are cleared.

TECHNICAL ANALYSIS

Silver (XAG/USD) exhibits strong bullish momentum based on technical indicators, with price action nearing the key resistance level of $31.00, aligned with the 100-day SMA. A decisive breakout above this level could trigger further upside toward $31.50 and $32.30, confirming a continuation of the bullish trend. The RSI and MACD indicators on the daily chart are gaining positive traction, signaling buying strength. However, if it fails to break above $31.00, it could result in consolidation or a pullback towards the strong support near the 200-day SMA at $30.00. A breakdown below this level could expose silver to further declines toward the $29.70-$29.00 zone, which could intensify bearish pressure. Traders should look for volume spikes and momentum shifts to confirm potential breakouts or reversals.

FORECAST

Silver (XAG/USD) is trading at its weekly highs with a positive technical outlook, indicating strong bullish momentum. The immediate resistance level to watch is $31.00, marked by the 100-day SMA. A decisive breakout above this level could trigger a short-covering rally, pushing prices toward the $31.50-$31.60 region. Further buying interest can take the rally to the December swing high of $32.30 and, if the momentum continues, silver may even touch the $32.50-$33.00 range in the near term. The technical indicators are also bullish with RSI and MACD, showing that the recent correction from its October 2024 peak is done and silver will continue to rally.

Even though there is a positive bias, silver remains vulnerable to downside risks if it fails to break above the key $31.00 resistance. There is strong support at the 200-day SMA near the psychological level of $30.00 that could prevent a deeper pullback. A convincing break below this level might trigger a decline toward $29.70, the weekly low. If selling pressure builds further, silver can fall to around $29.10-$29.00 and the next crucial support would be at $28.70, which was a multi-month low reached in December. A sustained trend below this could mean that prices might reverse the current trend and shift the focus to bears. Traders are to watch the support around these levels and see if it opens up channels for further movements downward.