- Silver attracted some buying near 200-hour SMA and edged higher on Friday.
- The near-term technical setup remains tilted firmly in favour of bearish traders.
- A sustained move beyond the overnight highs is needed to negate the bearish bias.
Silver stalled the previous day's retracement slide from two-week tops and attracted some dip-buying on the last trading day of the week. The commodity held on to its modest gains through the first half of the European session and was last seen hovering near the $26.10-15 region.
From a technical perspective, the XAG/USD, for now, seems to have formed a strong base near 200-hour SMA, which should now act as a key pivotal point for short-term traders. Given that the overnight positive move struggle to find acceptance above the $26.30 supply zone, the bias still seems tilted in favour of bearish traders.
That said, the XAG/USD has been showing resilience below the $25.70 confluence support, comprising of the very important 200-day SMA and the 61.8% Fibonacci level of the $23.78-$28.75 move up. This makes it prudent to wait for some follow-through selling below the mentioned region before positioning for any further depreciating move.
Meanwhile, technical indicators on the daily chart – though have been recovering from the negative territory – are yet to confirm a bullish bias. This adds credence to the near-term negative bias. Hence, any subsequent positive move back towards the mentioned confluence region might still be seen as a selling opportunity.
However, a convincing breakthrough, leading to a subsequent move beyond the $26.55-60 hurdle, might push the XAG/USD further towards the 38.2% Fibo. level, around the $26.85 region. This is followed by the $27.00 mark, above which the next relevant resistance is pegged near mid-$27.00s, or the 23.6% Fibo. level.
On the flip side, any meaningful pullback below the $26.00-$25.95 region (200-hour SMA) might continue to find decent support near the $25.70 region ahead of weekly swing lows, around mid-$25.00s. Sustained weakness below might turn the XAG/USD vulnerable and pave the way for a fall towards challenging the key $25.00 psychological mark.
Silver daily chart
-637608153597172729.png)
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. 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.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.