07 Jan 2025

• Silver catches fresh bids and remains close to a multi-week top touched on Monday. 
• A move beyond the 200-day SMA seems to have shifted the bias in favor of bulls.
• A convincing break below the $28.80-$28.75 area will negate the positive outlook.
• Silver (XAG/USD) has garnered interest from dip-buyers after a slight retreat from a nearly three-week peak, successfully reclaiming the $30.00 psychological level during the Asian trading session on Tuesday. Furthermore, the current technical configuration appears to favor bullish traders, bolstering the likelihood of continued upward movement.
• In light of the recent rebound from the $28.80-$28.75 range, which represents a multi-month low reached in December, a sustained move above the 200-day Simple Moving Average (SMA) reinforces a favorable outlook for the XAG/USD. Additionally, the oscillators on the daily chart have begun to exhibit positive momentum, indicating that the most likely direction for the commodity is upward.
  
  Should there be continued buying interest that surpasses Monday's swing high near the $30.35 level, this will strengthen the bullish sentiment and propel the XAG/USD past the $30.50 resistance, aiming for the $31.00 target. The next significant obstacle is identified around the $31.15-$31.20 supply zone; if this level is breached, it would imply that the downtrend from the $35.00 area, which marked a multi-year peak in October, has concluded.
  
  Conversely, any declines towards the $29.50-$29.40 range may now be perceived as an opportunity to buy. This development should help to contain the downside near the $29.10-$29.00 area. Following this, the multi-month low around the $28.80-$28.75 range, if breached, would serve as a new signal for bearish traders and potentially lead to more significant losses.