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17/09/24
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Silver Prices Struggle to Break Out: Technical Analysis & Market Insights
Silver prices are currently facing challenges in generating significant upward movement, fluctuating within a narrow range. The technical analysis suggests a favorable environment for bullish traders, indicating potential for further gains while also highlighting a limited risk for significant declines.
During the Asian trading session, silver (XAG/USD) is hovering around $30.80 to $30.85, maintaining close proximity to a recent two-month high achieved the previous day. A key factor contributing to the positive sentiment was the successful breach of the $30.00 psychological barrier last Friday, which also coincided with a short-term downward trend line. This breakout is viewed as a catalyst for bullish market activity. Additionally, the daily chart oscillators are beginning to show positive momentum, reinforcing expectations for an upward trend in the near term.
If silver prices can sustain momentum above the $31.00 level, this would bolster the optimistic outlook and likely propel the metal towards the next resistance threshold around $31.45 to $31.50. Should buying activity continue, it could pave the way for traders to target a return to the $32.00 level, with aspirations to reach the decade-high of mid-$32.00s recorded in May.
Conversely, any significant downturn dipping below the immediate support level of $30.50 may attract new buyers, particularly near the previously breached downward trend-line, which now serves as support around the $30.00 level. This level could be pivotal; if breached, it might lead to increased selling pressure and a potential decline for silver prices.
In such a scenario, prices could fall toward the intermediate support level around $29.40 to $29.35 before testing the psychological $29.00 level. Further selling could drive silver down to the next significant support around $28.20 to $28.15, followed by the $28.00 level and the monthly low near $27.70. A breach of this level could shift market sentiment towards bearish traders.
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