Silver moved lower on Thursday (1/23) and for now, seems to have snapped a three-day winning streak to its highest level since December 13, around the $31.00 area touched the previous day. The white metal maintained its negative bias through the first half of the European session on Thursday and is currently trading around the $30.55 zone, down over 0.85% for the day.

From a technical perspective, the $31.00 level is a confluence hurdle – comprising of the 100-day Simple Moving Average (SMA) and the upper end of a multi-month-old descending channel. The aforementioned barrier should now act as a pivotal point, which if broken decisively should pave the way for additional near-term gains. Given that oscillators on the daily chart are holding in the positive territory, XAG/USD could surpass the $31.25 intermediate hurdle and rise towards the $31.45-$31.50 resistance. The momentum could extend further towards reclaiming the $32.00 round figure en-route December swing highs, around the $32.25-$32.30 area.

On the flip side, any further declines are likely to find decent support and attract some buyers near the $30.00 psychological mark. A convincing break below the last might turn the XAG/USD vulnerable to accelerate the slide towards the $29.60 region before eventually dropping to test sub-$29.00 levels, or multi-month lows touched in December. Some follow-through selling could expose the descending channel support, currently pegged near the $27.35 region, with some intermediate supports near the $28.30 area, the $28.00 round figure, and the $27.70-$27.65 zone.

Source: FXStreet