Silver Price Analysis: XAG/USD retakes $31.00 mark, seems poised to climb further

• Silver attracts dip-buyers on Tuesday and moves back closer to over a two-month top.
• The setup favors bullish traders and supports prospects for a further appreciating move.
• Any downfall towards $30.00 could be seen as a buying opportunity and remain limited.

Silver (XAG/USD) regains positive traction following the previous day's modest downfall and climbs back above the $31.00 mark during the Asian session on Tuesday. The white metal, however, remains below the $31.45 area, or its highest level since July 17 touched last week, though the technical setup seems tilted firmly in favor of bullish traders. 

The recent breakout through a short-term descending trend line, along with the fact that oscillators on the daily chart have been gaining positive traction, validates the positive outlook for the XAG/USD. Hence, a subsequent strength beyond the monthly peak, around the $31.45 region, en route to the July swing high, around the $31.75 zone, looks like a distinct possibility. 

The XAG/USD might then aim to reclaim the $32.00 mark and extend the momentum further towards challenging a one-decade high, around mid-$32.00s touched in May. 

On the flip side, the $30.70-$30.65 area now seems to protect the immediate downside ahead of the overnight swing low, around the $30.35 region. Any further decline towards the $30.00 psychological mark might still be seen as a buying opportunity. This, in turn, should limit the downside near the aforementioned trend-line resistance breakpoint, around the $29.40-$29.35 region. 

The said trend line now coincides with the 50-day Simple Moving Average (SMA) and is currently pegged near the $29.00 mark, which should act as a key pivotal point. A convincing break below the latter might shift the bias in favor of bearish traders and pave the way for some meaningful corrective decline for the XAG/USD.

Silver daily chart