Silver Price Analysis: XAG/USD clings to strong recovery gains, bearish bias intact


  • 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

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 26.37
Today Daily Change 0.45
Today Daily Change % 1.74
Today daily open 25.92
 
Trends
Daily SMA20 27.68
Daily SMA50 27.01
Daily SMA100 26.64
Daily SMA200 25.73
 
Levels
Previous Daily High 27.25
Previous Daily Low 25.78
Previous Weekly High 28.29
Previous Weekly Low 27.47
Previous Monthly High 28.75
Previous Monthly Low 25.81
Daily Fibonacci 38.2% 26.34
Daily Fibonacci 61.8% 26.68
Daily Pivot Point S1 25.38
Daily Pivot Point S2 24.84
Daily Pivot Point S3 23.91
Daily Pivot Point R1 26.85
Daily Pivot Point R2 27.78
Daily Pivot Point R3 28.32

 

 

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