Silver Price Analysis: XAG/USD remains below $31.00 mark, bulls flirt with 200-hour SMA

• Silver regains positive traction and stalls a two-day corrective slide from over a one-month top.
• The technical setup warrants some caution before positioning for a further intraday move up. 
• A breakout through a short-term trading range is needed to confirm the near-term direction.

Silver (XAG/USD) attracts some buyers during the Asian session on Tuesday, snapping a two-day losing streak and stalling the recent pullback from the $31.75 area or its highest level since May 31 touched last week. The white metal currently trades around the $30.80-$30.85 region, up 0.45% for the day, with bulls now awaiting a sustained move beyond the 200-hour Simple Moving Average (SMA) before positioning for further gains.

Looking at the broader picture, the XAG/USD remains confined in a multi-day-old trading range. Furthermore, neutral technical indicators on the 1-hour chart warrant some caution before positioning for a firm intraday direction. Meanwhile, oscillators on the daily chart are holding in the positive territory and suggest that the path of least resistance for the commodity is to the upside. That said, a convincing break below the short-term trading range support, near the $30.40-$30.35 area, will be seen as a fresh trigger for bearish traders and pave the way for deeper losses.

The XAG/USD might then accelerate the downfall and weaken further below the $30.00 psychological mark, towards testing the next relevant support near the $29.75 horizontal zone. The downward trajectory could extend further towards intermediate support near the $29.40 region en route to the $29.00 round figure and the June monthly swing low, around the $28.55 area.

On the flip side, any further move up is more likely to face some resistance near the $31.00 mark, representing the top end of the trading range. Acceptance above the said handle will suggest that the corrective decline has run its course and pave the way for a move towards the $31.30 hurdle before the XAG/USD eventually climbs to the monthly swing high, around the $31.75 region. The momentum could extend further towards reclaiming the $32.00 mark for the first time since May 30.

Silver 1-hour chart