- Silver once again failed to make it through a stronger resistance near the $26.30 supply zone.
- The set-up favours bearish traders and supports prospects for an eventual break to the downside.
- A sustained move beyond monthly swing highs is needed to negate the near-term negative bias.
Silver continued with its struggle to capitalize on the move beyond the $26.30 strong resistance zone and edged lower on the last trading day of the week. The white metal remained depressed through the early North American session, with bears now awaiting a sustained break below the $26.00 mark.
The mentioned handle is closely followed by the very important 200-day SMA, around the $25.85 region, and the 61.8% Fibonacci level of the $23.78-$28.75 move up, near the $25.70-65 region. Some follow-through selling below monthly swing lows, around mid-$25.00s, will be seen as a fresh trigger for bearish traders and set the stage for additional losses.
Meanwhile, oscillators on the daily chart are holding in the negative territory. This, along with the fact that the XAG/USD has repeated failed to find acceptance above the $50% Fibo., supports prospects for an eventual break to the downside. Hence, a subsequent slide towards the next relevant support, near the key $25.00 psychological mark, looks a distinct possibility.
On the flip side, the $26.30 supply zone might continue to act as an immediate strong resistance ahead of weekly tops, around the $26.45 region. Above the mentioned barriers, the XAG/USD is likely to appreciating further. That said, the momentum is more likely to run out of steam near monthly swing highs, around the $26.75-80 region, which nears the 38.2% Fibo. level.
Only a sustained move beyond will negate near-term negative bias, rather prompt some technical buying. The XAG/USD might then aim to surpass the $27.00 mark and accelerate the positive momentum further towards the 23.6% Fibo. level, around mid-$27.00s.
Silver daily chart
Technical levels to watch
|Today last price||26.07|
|Today Daily Change||-0.27|
|Today Daily Change %||-1.03|
|Today daily open||26.34|
|Previous Daily High||26.4|
|Previous Daily Low||26.16|
|Previous Weekly High||26.78|
|Previous Weekly Low||25.76|
|Previous Monthly High||28.56|
|Previous Monthly Low||25.52|
|Daily Fibonacci 38.2%||26.31|
|Daily Fibonacci 61.8%||26.25|
|Daily Pivot Point S1||26.2|
|Daily Pivot Point S2||26.06|
|Daily Pivot Point S3||25.96|
|Daily Pivot Point R1||26.44|
|Daily Pivot Point R2||26.54|
|Daily Pivot Point R3||26.67|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD remains depressed near 1.0700 ahead of Lagarde, US data
EUR/USD is trading close to 1.0700, on the defensive in the European session. The US Dollar is extending post-US NFP gains amid cautious optimism, as investors assess the Fed rates outlook. Eurozone Sentix data slumps to -17.1 in June. Lagarde, US data awaited.
GBP/USD drops below 1.2400 amid firmer US Dollar
GBP/USD is falling below 1.2400 amid a notable US Dollar demand, dragging the major lower for the second successive day on Monday. Markets repricing of the Fed interest rates outlook push the US Treasury bond yields higher, in turn, the US Dollar. US ISM Services PMI next of note.
Gold finds short-term cushion above $1,940, more downside looks solid
Gold price has found a short-term cushion near $1,943.00, however, more downside seems favored. Gold price witnessed an intense sell-off after a mean-reversion move to near the 200-period EMA at $1,977.32.
Pro-XRP attorney says Ripple has 25% chance of winning against SEC, Judge could announce verdict by September
Ripple has a 25% chance of winning its legal battle against the US SEC, according to pro-XRP attorney John Deaton. Over the weekend, Deaton shared his opinion on Ripple’s likelihood of both an outright win and a partial victory.
Services PMIs the next focus after last week’s bumper US jobs report
While US markets finished the week on a high, after another bumper jobs report and a positive week across the board, markets in Europe, while finishing the week on a high, struggled to match the exuberance of investors on the other side of the Atlantic.