Silver Price Analysis: XAG/USD shows resilience below 100-hour SMA, holds steady above $31.00

• Silver attracts some dip-buyers near the $30.75 area, albeit it lacks bullish conviction.
• The mixed technical setup warrants caution before placing aggressive directional bets. 
• A sustained move and acceptance above $32.00 will be seen as a fresh trigger for bulls.

Silver (XAG/USD) reverses an intraday slide to the $30.75 area and climbs to the top end of its daily range during the early part of the European session on Tuesday. The white metal keeps the red for the second straight day and currently trades just above the $31.00 mark, down 0.40% for the day. 

From a technical perspective, the XAG/USD has been showing some resilience below the 100-hour Simple Moving Average (SMA). Moreover, mixed oscillators on the daily chart warrant some caution before positioning for the resumption of the recent retracement slide from the vicinity of the $33.00 mark, or the highest level since December 2012 touched earlier this month. 

In the meantime, the daily swing low, around the $30.75 region, now seems to protect the immediate downside ahead of the $30.35-$30.25 area and the $30.00 mark. This is followed by the $29.85-$29.75 confluence, comprising the 100-day and the 50-day SMAs, which if broken decisively will be seen as a fresh trigger for bearish traders and pave the way for deeper losses. 

The subsequent downfall could drag the XAG/USD to the $29.45 intermediate support en route to the $29.00 round figure and the $28.80.$28.75 region. The downward trajectory could extend further towards the $28.35-$28.30 area before the white metal eventually drops to the $28.00 mark and aims to test the September monthly swing low, around the $27.70-$27.65 zone. 

On the flip side, any subsequent move up is likely to confront stiff resistance near the $31.50 area. Some follow-through buying could allow the XAG/USD to reclaim the $32.00 mark. This is followed by resistance near the 32.25 supply zone, which if cleared could lift the XAG/USD back towards the multi-year peak, just ahead of the $33.00 round figure touched on October 4.

Silver 1-hour chart