Silver prices (XAG/USD) are recovering some of their recent losses, trading around $29.80 per troy ounce during Tuesday’s European trading session. An analysis of the daily chart suggests that short-term price momentum remains neutral, with the XAG/USD pair hovering around the nine-day and 14-day Exponential Moving Averages (EMAs). A breakout in either direction could provide clearer direction for the market.
The 14-day Relative Strength Index (RSI) is positioned near the 50 mark, indicating a balanced market with neither overbought nor oversold conditions, and reflecting a standoff between bullish and bearish forces.
At present, silver is testing resistance at the 14-day EMA, which stands at $29.83, closely followed by the nine-day EMA at $29.84. A breakout above these levels could enhance market sentiment, potentially driving the XAG/USD pair toward the key psychological $30.00 mark. If silver surpasses this threshold and maintains its upward momentum, the next target could be its two-month high of $32.28, last seen on December 9.
On the downside, initial support is found at the four-month low of $28.74, recorded on December 19, followed by the critical psychological level of $28.00. A break below these levels could signal intensified bearish momentum, with further downside potential for silver prices.
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