14 Jan 2025

Silver is facing challenges in establishing significant momentum and appears susceptible to further declines.

The recent setback near the 100-day EMA reinforces the likelihood of additional losses.

A consistent rise above the $30.50-$30.55 range would invalidate the pessimistic forecast.

Silver (XAG/USD) experiences a slight increase during the Asian trading session on Tuesday; however, it exhibits a lack of strong bullish momentum and appears susceptible to further declines following the previous day's pullback from a four-week high. The white metal is presently trading in the vicinity of $29.65, reflecting a daily gain of 0.15%.

From a technical standpoint, the failure observed on Monday near the 100-day Exponential Moving Average (EMA) indicates that the recent rebound from the $28.80-$28.75 range has lost momentum, thereby reinforcing a negative outlook. However, the presence of mixed oscillators on the daily chart suggests a degree of caution is warranted before initiating new bearish positions on the XAG/USD and anticipating further declines.

Currently, the psychological level of $30.00 appears to serve as an immediate obstacle, followed by the $30.50-$30.55 range (100-day EMA). A sustained breakthrough beyond this latter level could alter the near-term sentiment in favor of bullish traders, potentially propelling the XAG/USD past an intermediate resistance around the $31.00 mark, and towards the next significant barrier in the $31.35-$31.40 zone.

Conversely, a decline below the mid-$29.00s would reinforce the bearish sentiment, exposing the XAG/USD to a retest of the $29.00 level before it may eventually decline to the $28.80-$28.70 range, which corresponds to a three-month low reached in December. This downward movement could further extend towards the $28.45-$28.40 area, ultimately targeting the $28.00 level and the support range of $27.70-$27.65.