Silver Price Analysis: XAG/USD continues to face rejection near $26.00; $25.50-40 holds the key

Silver once again fails ahead of the $26.00 mark and turns lower on Thursday.
Positive oscillators support prospects for the emergence of some dip-buying.
A break below the $25.50-40 area is needed to negate the positive outlook.

Haresh Menghani FXStreet

Silver attracts some sellers following an early uptick to the $26.00 neighbourhood and extends its intraday descent through the early European session on Thursday. The white metal drops to a fresh daily low, around the $25.45 region in the last hour and for now, seems to have snapped a two-day winning streak back closer to over a two-week high touched on Monday.

From a technical perspective, the recent repeated failures near the $26.00 round figure could be seen as the first sign of possible bullish exhaustion. The XAG/USD, however, has been showing resilience near the $25.50-$25.40 strong horizontal resistance breakpoint, now turned support. The said area coincides with the 23.6% Fibonacci retracement level of the March-April rally and should act as a key pivotal point.

Meanwhile, oscillators on the daily chart are holding comfortably in the positive territory. This further makes it prudent to wait for strong follow-through selling below the aforementioned support before confirming that the XAG/USD has formed a near-term top and positioning for any meaningful corrective decline. The white metal might then weaken below the $24.00 mark and test 38.2% Fibo. level, around the $23.70 area.

The downward trajectory could get extended further towards the $23.35-$23.30 confluence, comprising the 50-day and the 100-day Simple Moving Averages (SMAs), en route to the $23.00 mark, or the 50% Fibo. level.

On the flip side, bulls might now wait for a move beyond the $26.00 round figure and a one-year high touched in April before placing fresh bets. The subsequent move up has the potential to lift the XAG/USD towards the $26.25-$26.30 region en route to the March 2022 swing high, just ahead of the $27.00 round-figure mark.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	25.49
Today Daily Change	-0.09
Today Daily Change %	-0.35
Today daily open	25.58

Trends
Daily SMA20	25.17
Daily SMA50	23.28
Daily SMA100	23.28
Daily SMA200	21.67

Levels
Previous Daily High	25.61
Previous Daily Low	25.09
Previous Weekly High	25.36
Previous Weekly Low	24.49
Previous Monthly High	26.09
Previous Monthly Low	23.57
Daily Fibonacci 38.2%	25.41
Daily Fibonacci 61.8%	25.29
Daily Pivot Point S1	25.24
Daily Pivot Point S2	24.91
Daily Pivot Point S3	24.72
Daily Pivot Point R1	25.76
Daily Pivot Point R2	25.95
Daily Pivot Point R3	26.28

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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