Silver prices advanced by 0.47% on Tuesday, although they remain below the significant eight-year high of $32.51 reached on Monday. As of the latest update, XAG/USD is trading at $31.96, after dipping to a daily low of $31.80.
XAG/USD Price Analysis: Technical Outlook
Despite failing to surpass the year-to-date (YTD) high of $32.51, silver maintains an upward bias. The Relative Strength Index (RSI) is approaching overbought territory but continues to support the buyers due to the strength and speed of the current uptrend. Under strong trending conditions, RSI is considered overbought at 80.00.
If XAG/USD clears the $32.51 mark, further gains are anticipated, with the next resistance level at $33.00. Breaking this barrier could open the path to the October 2012 high of $35.40.
On the downside, if silver drops below the daily low of $30.95 from May 20, it could face further losses. The next support zone would be the April 12 high of $29.79, followed by the psychological level of $28.00.
