Silver (XAG/USD) has entered a phase of bullish consolidation, oscillating within a narrow range above $24.50 during the first half of Tuesday’s European trading session. Despite this, silver remains in close proximity to the nearly three-month high touched on Monday, indicating a potential continuation of the robust upward trend observed over the past two weeks.
From a technical perspective, the recent breakthrough of the 200-day Simple Moving Average (SMA) and subsequent breach of the $24 psychological level are considered new triggers for bullish traders. Additionally, the daily chart’s oscillation indicators have stabilized in positive territory, remaining comfortably distant from overbought conditions, affirming the short-term optimistic outlook for Silver/USD.
As a result, any significant downward movement may still be perceived as a buying opportunity near the aforementioned resistance-turned-support level around $24. This level is expected to act as a buffer, limiting the downside for silver prices towards the 200-day SMA (currently near the $23.35-$23.30 range). A breach below the latter could prompt some technical selling pressure, paving the way for a meaningful decline.
Simultaneously, Silver/USD is poised to make another attempt at breaching the psychological barrier of $25. The next relevant resistance lies near the $25.25 zone or the annual peak touched in May. A decisive breakthrough at this level would confirm the bullish bias. Subsequently, silver may experience an accelerated ascent beyond the $26 psychological level, marking the first time since April 2022.
