Silver Price Analysis: XAG/USD remains confined in a range near $25.00 mark
|- Silver lacked any firm directional bias and oscillated in a range on the first day of a new week.
- Last week’s failure near the 200-hour SMA suggests that the recent bounce has lost steam.
- The mixed technical set-up warrants some caution before placing aggressive directional bets.
Silver seesawed between tepid gains/minor losses on Monday and remained confined in a narrow trading band, around the $25.00 psychological mark through the early North American session.
From a technical perspective, last week's goodish rebound from the $24.45 area faltered near the 200-hour SMA. The mentioned barrier, currently around the $25.35-$24.40 region, should act as a pivotal point and help determine the next leg of a directional move for the XAG/USD.
Sustained strength beyond the aforementioned barrier will be seen as a fresh trigger for bullish traders and set the stage for a further near-term appreciating move. The XAG/USD might then surpass an intermediate resistance near the $25.75-$25.80 and reclaim the $26.00 round figure.
The momentum could further get extended and push spot prices towards the next relevant hurdle near the $26.40 region en-route the $27.00 mark and mid-$27.00s. That said, neutral oscillators on daily/hourly charts warrant caution before placing aggressive bullish bets around the XAG/USD.
On the flip side, sustained weakness below the $24.85 area might protect the immediate downside ahead of the $24.45 area. Some follow-through selling would make the XAG/USD vulnerable and accelerate the slide towards testing the very important 200-day SMA support near the $24.00 mark.
Silver 1-hour chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.