Silver Price Forecast: XAG/USD remains tepid near $30.50 with a bearish outlook

• Silver price extends its losing streak as short-term price momentum weakens.
• The alignment of the nine- and 14-day EMAs suggests a lack of strong directional momentum.
• The initial support appears at a psychological $30.00 level, followed by a “throwback support” at its three-month low of $29.65.

Silver price (XAG/USD) continues its losing streak for the fourth successive day, trading around $30.50 per troy ounce during the Asian hours on Tuesday. Analysis of the daily chart indicates a momentum shift to bearish from bullish bias as the pair has broken below the ascending channel pattern.

The XAG/USD pair moves below both of these EMAs, indicating a bearish outlook and signaling to weakening short-term price momentum. This points to increasing selling interest and raises the likelihood of further price depreciation. Additionally, the 14-day Relative Strength Index (RSI) is positioned below the 50 mark, further confirming the emergence of the bearish bias.

However, the alignment of the nine- and 14-day Exponential Moving Averages (EMAs) suggests that the market is experiencing a period of consolidation, lacking a strong directional momentum. Traders may interpret this as a signal that the market is waiting for a catalyst to determine its next move, whether upward or downward.

The XAG/USD pair may test its primary support at the psychological level of $30.00, followed by a “throwback support” level at its three-month low of $29.65, which was recorded on November 28.

On the upside, the immediate barriers appear at the nine- and 14-day EMAs at $30.91 and $30.96, respectively. A break above these levels could cause the bullish bias to re-emerge and help the Silver price to retest its six-week high of $32.28, reached on December 9.

XAG/USD: Daily Chart