Silver Faces A Major Descending Trend Line

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Silver Faces A Major Descending Trend Line

Silver (XAG/USD) Trades Above $23.50, Faces A Major Descending Trend Line

It seems like the Silver (XAG/USD) has managed to stage a positive trend on Tuesday. This will enable the precious metal to reverse its earlier losses while also maintaining an upward trend.

For now, the Silver prices are near the $23.65 to $23.70 region with a gain of +1% for the day. According to analysts, the Silver (XAG/USD) will likely go further from here.

Silver To Target $24.00 And $25.00 Levels

The technical outlook of Silver shows that the precious metal experienced a pullback starting from $24.15. However, the prices stopped near the 200 SMA on the daily chart, which is now serving as dynamic support.

The current setup appears to be favoring the Silver Bulls, as the nearest support levels allow a base for further appreciation. In addition, the oscillator indicators are also printing values in the bullish zone & are not in the overbought zone yet.

So that's yet another reason behind the forecast of more upside in the Silver (XAG/USD). Furthermore, the USD weakness has also translated into the upside of the Silver.

However, some experts believe that the Silver bulls still face a major hurdle in the form of a bearish trendline starting from May 2023. For now, the nearest level that can be seen on the trendline is present at $24.00.

In short, the Silver will need to cross $24.00 to validate its bullish momentum & to invite more bids. If the precious metal fails to break the $24.00 in a timely manner, the trendline will continue to go lower & put pressure on the Silver.

Beyond the $24.00 handle, there's the resistance zone of $24.20 to $24.25 that will also provide a challenge to the Silver Bulls. After that, there will be enough ground for the Silver to turn higher before reaching the round figure of $25.00.

On the downside, the 200 SMA (daily chart) is still relevant & can be seen at the $23.30 level. So, any sudden bearish pressure in the Silver will likely be contained by the 200 SMA.

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