- Silver has been oscillating in a range near the $24.30-25 confluence support.
- Mixed oscillators warrant caution before placing aggressive directional bets.
Silver extended its sideways consolidative price action through the mid-European session and remained confined in a narrow trading band around the $24.30-25 region.
The mentioned area marks confluence support comprising of 200-period SMA on the 4-hour chart and a short-term ascending trend-line extending from August 20 swing lows. Given the previous day's pullback from near one-month tops, a sustained break below will be seen as a fresh trigger for bearish traders.
Meanwhile, technical indicators on hourly charts have been drifting into the negative territory but are yet to confirm a bearish bias on the daily chart. This, in turn, makes it prudent to wait for a convincing breakthrough the said confluence support before positioning for any further downfall.
The next relevant support is pegged near the $24.00 round-figure ahead of the $24.80-75 horizontal zone. Some follow-through selling might turn the XAG/USD vulnerable and accelerate the slide towards intermediate support near the $23.50-45 region en-route the $23.00 round-figure mark.
On the flip side, immediate resistance is pegged near the $24.40-50 region ahead of the overnight swing highs, around the $24.80-85 region. This is closely followed by the key $25.00 psychological mark, which if cleared decisively should push the XAG/USD to the $25.65 zone. The momentum could further get extended and allow bulls to challenge August monthly swing highs, around the $26.00 mark.
Silver 4-hour chart
Technical levels to watch
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