15 Jan 2025

• Silver gains positive traction for the second straight day, though the upside seems limited.
• The recent decline along a descending channel points to a well-established downtrend.
• Neutral oscillators on the daily chart further warrant some caution for bullish traders
• Silver (XAG/USD) has attracted buyers for the second consecutive day, rising above the psychological threshold of $30.00 during the early part of the European session on Wednesday. However, the technical indicators suggest that bullish traders should exercise caution before committing to any further upward movements.
  
  The recent decline from the $35.00 level, which represents a multi-year peak reached in October, has followed a descending channel indicative of a well-established downtrend. Additionally, while the oscillators on the daily chart have moved out of bearish territory, they have yet to demonstrate positive momentum. Consequently, any further upward movement may encounter resistance near the upper boundary of the channel, approximately at the $30.45 level.
  
  Following this, the 100-day Simple Moving Average (SMA) is positioned just below the $31.00 mark. A sustained move above this level would indicate that the nearly three-month corrective decline has concluded, potentially leading to further gains. In such a scenario, XAG/USD could accelerate its upward trajectory towards the intermediate resistance at $31.70, with the next targets being the $32.00 level and the December swing high, situated around the $32.30-$32.35 range.
• On the flip side, the weekly trough, around mid-$29.00s touched on Monday, could offer immediate support. A convincing break below will reaffirm the negative setup and make the XAG/USD vulnerable to weaken further below the $29.00 mark, towards retesting the $28.75-$28.70 support, or a multi-month low touched in December. Some follow-through selling will be seen as a fresh trigger for bearish traders and pave the way for a further depreciating move