Silver Price Analysis: XAG/USD hangs near weekly lows, just above mid-$27.00s

Silver was seen hovering near the lower boundary of its weekly trading range.
Neutral oscillators on the daily charts warrant some caution for bearish traders.
Sustained weakness below the $27.00 mark is needed to confirm a breakdown.

Haresh Menghani FXStreet

Silver remained on the defensive through the first half of the trading action on Wednesday and was last seen hovering near weekly lows, just above mid-$27.00s.

From a technical perspective, the recent bounce from three-week lows faltered near the $28.00 mark on Tuesday. The mentioned handle marks an ascending trend-line support breakpoint – extending from YTD lows touched in March – and should now act as a key pivotal point for short-term traders.

Meanwhile, oscillators on the daily chart – though have been losing positive momentum – are yet to confirm a bearish bias and warrant some caution before positioning for any further decline. Hence, any subsequent decline might continue to find decent support near the $27.00 mark and remain limited.

That said, a convincing break below will mark a fresh breakdown and turn the XAG/USD vulnerable. The next relevant support is pegged near the $26.60 resistance breakpoint ahead of the $26.00 mark and the very important 200-day SMA. The latter is currently pegged near the $25.75-70 region.

On the flip side, the $27.90-$28.00 region now seems to have emerged as an immediate strong hurdle and is closely followed by the $28.25-30 supply zone. Sustained strength beyond will negate the negative bias and push the XAG/USD back towards monthly tops, around the $28.75 region.

Some follow-through buying should pave the way for a move beyond the $29.00 mark, towards the $29.60 resistance zone en-route the $30.00 psychological mark, or multi-year tops touched in February.

XAG/USD daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	27.59
Today Daily Change	-0.02
Today Daily Change %	-0.07
Today daily open	27.61

Trends
Daily SMA20	27.75
Daily SMA50	26.65
Daily SMA100	26.5
Daily SMA200	25.72

Levels
Previous Daily High	27.98
Previous Daily Low	27.51
Previous Weekly High	28.56
Previous Weekly Low	27.01
Previous Monthly High	28.75
Previous Monthly Low	25.81
Daily Fibonacci 38.2%	27.69
Daily Fibonacci 61.8%	27.8
Daily Pivot Point S1	27.42
Daily Pivot Point S2	27.23
Daily Pivot Point S3	26.95
Daily Pivot Point R1	27.89
Daily Pivot Point R2	28.17
Daily Pivot Point R3	28.37

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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