- Silver regained positive traction on Thursday and inched back closer to weekly tops.
- The set-up still favours bearish traders and supports prospects for additional losses.
- A sustained break below the $25.70 confluence support will reaffirm the negative bias.
Silver added to its intraday gains and climbed to fresh daily tops during the early North American session. The commodity was last seen trading around the $26.10-15 region, with bulls now eyeing weekly tops set on Wednesday.
From a technical perspective, the XAG/USD, so far, has managed to defend a 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 should act as a key pivotal point for short-term traders and help determine the next leg of a directional move for the white metal.
Meanwhile, technical indicators on the daily chart – though have recovered from lower levels – are still holding deep in the bearish territory. Given last week's break below a symmetrical triangle, the technical set-up still seems tilted in favour of bearish traders and supports prospects for a further near-term depreciating move.
That said, traders are likely to wait for a sustained weakness below the mentioned confluence support, around the $25.70 region, before placing fresh bearish bets. The next relevant support is pegged near the $25.55 region before the XAG/USD eventually drops to the key $25.00 psychological mark en-route the $24.80 horizontal level.
Some follow-through selling would turn the XAG/USD vulnerable to extend the decline towards the $24.00 round-figure mark. The downward trajectory could eventually drag the white metal back towards YTD lows, around the $23.80-75 region touched in March.
On the flip side, the ongoing positive move is more likely to confront stiff resistance near the 50% Fibo. level, around the $26.25-30 region. Any subsequent strength might be seen as a selling opportunity and remain capped near the $26.55-60 supply zone. This is followed by the 38.2% Fibo. level, around the $26.85 region.
A sustained move beyond the latter is needed to negate the near-term negative bias and shift the bias back in favour of bullish traders.
XAG/USD daily chart
-637601395161130876.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
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.