Silver Price Forecast: XAG/USD looks to build on momentum beyond $30.00/200-day SMA

• Silver catches fresh bids and remains close to a multi-week top touched on Monday. 
• A move beyond the 200-day SMA seems to have shifted the bias in favor of bulls.
• A convincing break below the $28.80-$28.75 area will negate the positive outlook.

Silver (XAG/USD) attracts some dip-buying following the overnight modest pullback from a near three-week high and retakes the $30.00 psychological mark during the Asian session on Tuesday. Moreover, the technical setup now seems tilted in favor of bullish traders and supports prospects for a further appreciating move. 

Against the backdrop of the recent recovery from the $28.80-$28.75 area, or a multi-month low touched in December, acceptance above the 200-day Simple Moving Average (SMA) validates the positive outlook for the XAG/USD. Moreover, oscillators on the daily chart have just started gaining positive traction and suggest that the path of least resistance for the commodity is to the upside. 

Some follow-through buying beyond Monday's swing high, around the $30.35 region, will reaffirm the bullish bias and lift the XAG/USD beyond the $30.50 hurdle, towards the $31.00 mark. The next relevant barrier is pegged near the $31.15-$31.20 supply zone, which if cleared will suggest that the downtrend from the $35.00 neighborhood, or a multi-year top touched in October has run its course. 

On the flip side, dips towards the $29.50-$29.40 area might now be seen as a buying opportunity. This, in turn, should help limit the downside near the $29.10-$29.00 zone. The latter is followed by the multi-month low, around the $28.80-$28.75 region, which if broken will be seen as a fresh trigger for bearish traders and pave the way for deeper losses.

Silver daily chart