On Thursday’s Asian trading session, silver (XAG/USD) inched higher, moving away from a two-week low around the $30.00 mark reached the previous day. Currently trading near $30.40, the white metal has risen nearly 0.35% for the day but shows limited bullish momentum.
Technically, silver’s recent inability to extend gains beyond the $31.40 resistance level, coupled with a breakdown through a short-term support range, could signal a potential bearish shift. Caution is advised as neutral indicators on the daily chart suggest waiting for confirmation of further declines below the $30.00 level before considering additional short positions.
Should silver fall below the $29.70 support, it could test the next significant support level near $29.15. A decisive break below $29.00 might expose the June low around $28.60-$28.55, with potential declines extending to the 100-day Simple Moving Average (SMA) near the $28.00 mark.
Conversely, if silver prices rise, they are likely to face strong resistance near the $31.00 level. A sustained break above this point could drive the price back to the $31.40 resistance zone. Continued upward momentum beyond the monthly peak around $31.80 might propel silver towards the $32.00 mark, with further gains potentially challenging the year-to-date high in the mid-$32.00s from May.
