Silver consolidates below $31.00, bullish potential intact

Silver trades with a positive bias around the $30.80-30.85 area during the Asian session on Tuesday and remains well within striking distance of a two-month peak touched the previous day.

From a technical perspective, Friday’s convincing breakout through the $30.00 psychological mark barrier, which coincided with a short-term descending trend line, was seen as a fresh trigger for bullish traders in XAGUSD.

Moreover, oscillators on the daily chart have just started gaining positive traction and support prospects for a further near-term appreciating move.

Acceptance above the $31.00 mark will reaffirm the constructive outlook and lift the white metal to the next relevant hurdle near the $31.45-31.50 supply zone.

Some follow-through buying should allow bulls to aim back to reclaim the $32.00 mark. The momentum should allow XAGUSD to aim back to challenge a one-decade high, around mid-$32.00s touched in May.

On the flip side, any meaningful corrective slide below the $30.50 immediate support is likely to attract fresh buyers and remain cushioned near the aforementioned descending trend-line resistance breakpoint, now turned support, near the $30.00 mark. The latter could act as a key pivotal point, which if broken might prompt some technical selling and make the XAGUSD vulnerable.

XAGUSD daily chart by TradingView