Silver Price Forecast: XAG/USD seems vulnerable near $30.00, ascending channel breakdown in play

• Silver trades with a negative bias above a nearly two-week low touched on Monday.
• The technical setup favors bearish trades and supports prospects for deeper losses.
• A sustained move beyond the 100-day SMA is needed to negate the negative bias.

Silver (XAG/USD) struggles to capitalize on the previous day's bounce from the $29.70 area, or a nearly two-week low and ticks lower during the Asian session on Tuesday. The white metal currently trades just above the $30.00 psychological mark, down 0.20% for the day and seems vulnerable to slide further. 

Last week's failure near the 100-day Simple Moving Average (SMA) and a subsequent breakdown below a short-term ascending trend-channel favor bearish traders. Meanwhile, oscillators on the daily chart – though have been losing traction – are yet to confirm a negative outlook. This, in turn, makes it prudent to wait for some follow-through selling below the overnight swing low, around the $29.70 zone before positioning for deeper losses. 

The XAG/USD might then weaken further below mid-$29.00s and test the next relevant support near the $29.10-$29.00 area. The downward trajectory could extend further towards the $28.75-$28.70 region, or a multi-month low touched in December, before the white metal slides further towards the $28.00 round-figure mark. 

On the flip side, the ascending channel breakpoint, around the $30.30 area, now seems to act as an immediate hurdle ahead of the $30.50-$30.60 region. Any further move up might continue to face stiff resistance and remain capped near the $31.00 mark, or the 100-day SMA. The latter should act as a key pivotal point, which if cleared decisively might shift the near-term bias in favor of bullish traders and pave the way for a further appreciating move.

Silver daily chart