Silver Price Forecast: XAG/USD bulls await sustained move beyond $32.55 barrier

• Silver attracts some dip-buyers on Tuesday, though it lacks follow-through.
• The technical setup favors bulls and supports prospects for further gains.
• Any corrective slide below $32.00 could be seen as a buying opportunity.

Silver (XAG/USD) reverses an Asian session dip to the $32.00 neighborhood and climbs to the top end of its intraday trading range in the last hour. The white metal currently trades around the $32.35-$32.40 region, nearly unchanged for the day, though it remains well below the highest level since late October touched last Friday. 

Looking at the broader picture, the XAG/USD - barring a couple of knee-jerk spikes - has been oscillating in a familiar range over the past two weeks or so. Against the backdrop of the year-to-date strong move up, this might still be categorized as a bullish consolidation phase. Adding to this, positive oscillators on the daily chart suggest that the path of least resistance for the commodity is to the upside. 

That said, it will still be prudent to wait for some follow-through strength beyond the $32.55 horizontal barrier before positioning for a move toward the $33.00 mark. The XAG/USD might then climb further towards last Friday's swing high, around the $33.35-$33.40 zone en route to the $34.00 round figure, the $34.45 intermediate hurdle, and the $35.00 neighborhood, or the multi-year peak touched in October. 

On the flip side, weakness below the $32.00-$31.90 region now seems to have emerged as an immediate strong support. This is followed by the lower boundary of the short-term trading range, around the $31.75-$31.70 region, below which the XAG/USD could slide toward retesting the 100-day Simple Moving Average (SMA), currently pegged near the $31.20 area, before dropping to the $31.00 round figure mark. 

Some follow-through selling below the latter might shift the near-term bias in favor of bearish traders and pave deeper losses. The subsequent fall has the potential to drag the XAG/USD towards the next relevant support near the $30.25 region en route to the $30.00 psychological mark and the $29.55-$29.50 horizontal zone.

Silver daily chart