- Silver staged a solid rebound from the vicinity of the $25.75-70 confluence support.
- The overnight breakthrough a one-month-old trading range favours bearish traders.
- Any subsequent move up might be seen as a selling opportunity and remain capped.
Silver built on its steady intraday ascending and refreshed daily tops, around mid-$26.00s in the last hour, recovered a part of the overnight slump to the lowest level since late April.
The XAG/USD stalled its recent decline from the $28.25-30 supply zone and found a decent support near the $25.75 region, just ahead of the very important 200-day SMA. The mentioned area coincides with the 61.8% Fibonacci level of the $23.78-$28.75 move up and should now act as a key pivotal point for short-term traders.
Meanwhile, the XAG/USD, for now, seems to have snapped five consecutive days of the losing streak. A sustained move back above the 50% Fibo. level supports prospects for additional intraday gains. That said, any meaningful upside still seems elusive in the wake of the overnight break below a one-month-old trading range.
Technical indicators on the daily chart – though have managed to rebound from lower levels – are still holding deep in the bearish territory. Hence, any further move up might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly near the $26.75 trading range support breakpoint.
However, it will still be prudent to wait for sustained weakness below the $25.75-70 confluence support before positioning for any further depreciating move. The XAG/USD might then turn vulnerable and accelerate the fall towards the key 25.00 psychological mark before eventually dropping to the $24.80 support.
Silver daily chart
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Technical levels to watch
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