During Tuesday's Asian session, silver (XAG/USD) was trading close to $32.30, continuing its upward trend this week. The metal has been in the green for five days in a row, indicating that buyers are still in complete control.
Silver is rising steadily inside an ascending channel on the daily chart, which is a pattern that frequently indicates more upside potential. The fact that the price is currently above the 50-day and 9-day Exponential Moving Averages (EMAs) is a clear sign that the short-term momentum is still positive.
The 14-day Relative Strength Index (RSI) is hovering around the neutral 50 mark, which adds fuel to the bullish fire and indicates that there is still potential for upward movement without entering overbought territory.
Immediate Resistance: The channel's upper boundary, at about $33.50, is where the next significant test will take place. A clear breakout above this area could clear the way for a retest of $34.59, which was last reached in late March.
Support Levels: The 50-day EMA, which is located around $32.21, is probably where silver will first find support on the downside. The 9-day EMA, which is located at $31.90, also provides a safety net. If the price falls below these levels, we may see a decline towards $31.50.The metal could drop back to $28.00, the low set in early April, if there is a more significant correction.
Silver's resilience is not surprising given the unpredictability of the world and the central banks' continued emphasis on precious metals. The bullish tone appears to be intact for the time being, but traders should monitor support levels as the rally develops.
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