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02/10/24
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Silver Stagnates Below $31: Bullish Indicators Signal Potential Upswing
Silver’s pricing dynamics are currently showcasing a lack of decisive momentum, as it stabilizes beneath the mid-$31.00 range on Wednesday. While the market exhibits signs of consolidation, the prevailing technical indicators remain bullish, suggesting the potential for further upward movement. However, a decline beneath the $30.90-$30.85 level, which aligns with the recent weekly low, could signal the onset of deeper price corrections.
During the Asian trading session on Wednesday, silver (XAG/USD) has failed to build upon Tuesday’s gains, fluctuating within a limited range just below the mid-$31.00 level. Despite this lack of upward traction, the metal is positioned near its weekly low recorded earlier in the week. Nevertheless, market conditions appear favorable for bullish sentiment, indicating possibilities for a resurgence in prices akin to the upward trend that began from September’s swing low.
The silver market is currently trading well above the critical 100-day and 200-day Simple Moving Averages. The recent breakout from a short-term descending trendline, complemented by positive momentum indicators, further bolsters the optimistic outlook. As a result, there is a potential for upward movement toward the $31.80 resistance level, setting the stage for a test of the $32.00 figure.
Should prices maintain strength beyond this point, silver could encounter the $32.25 resistance before challenging the multi-year high of approximately $32.70, which was reached last week. Such a breakout would likely serve as a catalyst for bullish investors, facilitating a continued upward trajectory in the near term.
Conversely, immediate support for silver is now identified at the $31.00 level, with additional support residing between $30.90 and $30.85, where the weekly low is located. A decline below these levels could drive prices further down to the $30.25 support area, potentially reaching as low as the psychological level of $30.00. Additionally, support near the 100-day SMA around $29.80 to $29.65 could come into play, and a convincing breach of this level would likely shift market sentiment towards bearish dynamics.
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