Silver's rally stalls at crucial $31 resistance zone after three consecutive bullish sessions.
The usd to usdt binance$30.40-$30.35 area emerges as immediate support that could attract fresh buying interest.
Technical indicators suggest room for upside if prices clear the descending channel resistance.
Silver prices (XAG/USD) encountered selling pressure during Friday's trading session, interrupting the three-day advance that had pushed the white metal to its highest level in over a month near $31. The pullback saw prices retreat to the $30.60-$30.55 range during European hours, marking a 0.70% decline on the day.
Technical examination reveals the recent upward movement, which began earlier this month, faced rejection at a significant confluence zone. This resistance area combines the 100-day Simple Moving Average with the upper boundary of a descending price channel that's been in place since October's multi-year peak. A decisive breakout above this technical barrier could signal continuation of the bullish momentum.
Daily chart oscillators currently maintain positive positioning without showing overbought conditions, suggesting potential for further upside if resistance is overcome. Such a scenario might propel XAG/USD toward the $31.70 level initially, with subsequent targets including the psychologically important $32.00 mark and December's monthly high around $32.30-$32.35.
Conversely, additional downward movement could find support near the $30.40-$30.35 region, which may limit declines above the $30.00 psychological threshold. A breakdown below this key support could trigger technical selling pressure, potentially testing the $29.55-$29.50 zone before challenging December's multi-month lows around $28.75-$28.70.
XAG/USD Technical Outlook
The daily chart setup shows silver's price action remains contained within a broader descending channel pattern. Market participants will watch for either a confirmed breakout above channel resistance or a failure to hold above critical support levels to determine the next directional move.
