- The Silver struggles to gain significant traction and seems prone to sliding further.
- An overnight loss near the 100-day EMA supports the prospects for additional losses.
- Continued strengthening beyond the $30.50-30.55 area will negate the negative outlook.
Silver (XAG/USD) is trending higher during Tuesday’s Asian session, although it lacks bullish conviction and appears vulnerable to an extension of the previous day’s retracement from near the four-week high. The white metal is currently trading around $29.65, up 0.15% on the day.
From a technical perspective, Monday’s failure near the 100-day exponential moving average (EMA) suggests that the recent rally in the $28.80-$28.75 area has fizzled out, confirming the negative outlook. That said, the mixed oscillators on the daily chart require caution before placing recent bearish bets around XAG/USD and taking positions for deeper losses.
Meanwhile, the psychological $30.00 mark appears to be an immediate headwind ahead of the $30.50-$30.55 region (100-day EMA). A sustained move beyond the latter value could shift the short-term bias in favor of bullish traders and push XAG/USD beyond the intermediate resistance near the $31.00 round mark towards the next significant barrier near the $31.35-$31.40 zone.
On the other hand, a weakening below the mid-$29.00 level will confirm the bearish outlook and make the XAG/USD pair vulnerable to a retest of the $29.00 level before eventually falling to the $28.80-28.70 area, the three-month low reached in December. The downward trajectory could extend further towards the $28.45-$28.40 area on the way to the $28.00 level and $27.70-$27.65 support.
