- Silver draws dip-buying interest on Tuesday, recovering towards a two-month high.
- The outlook remains favorable for bullish traders, signaling potential for further gains.
- Any pullback towards $30.00 is likely to be viewed as a buying opportunity, with downside risks limited.
Silver (XAG/USD) regains upward momentum after a modest pullback the previous day, climbing back above the $31.00 level during Tuesday’s Asian session. Despite remaining below the $31.45 region, its highest point since July 17, the technical outlook strongly favors bullish traders.
A recent breakout above a short-term descending trend line, coupled with strengthening daily chart oscillators, reinforces the positive sentiment for XAG/USD. This suggests further upside potential beyond the monthly peak of $31.45, targeting the July swing high near $31.75.
If momentum continues, XAG/USD could aim for a move towards the $32.00 mark, potentially extending gains to challenge the mid-$32.00 range, last seen in May—a one-decade high.
On the downside, immediate support lies between $30.70 and $30.65, followed by the overnight low of $30.35. Any further dip towards the psychological $30.00 level is likely to be viewed as a buying opportunity, with the downside limited by the trend-line resistance near $29.40-$29.35.
This trend line, aligning with the 50-day Simple Moving Average (SMA) around $29.00, is a crucial pivot point. A decisive break below this level could shift the market bias in favor of bearish traders, signaling a deeper corrective move for XAG/USD.
Silver daily chart
