Silver Price Analysis: XAG/USD holds steady above ascending trend-line/200-SMA confluence support

Silver struggled to preserve its modest intraday gains and quickly retreated back to the lower end of its daily trading range, around the $27.55 region during the first half of the European session.

Despite the pullback, the XAG/USD, so far, has managed to hold above one-week lows, around the $27.20 zone touched on Friday. The mentioned area marks the lower boundary of a near two-month-old ascending trend-line and should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on the daily chart are holding in the positive territory and favour bullish traders. That said, bearish oscillators on hourly charts and the lack of follow-through buying warrants some caution before positioning for any meaningful appreciating move.

From current levels, ascending trend-line support near the $27.20 area might continue to protect the immediate downside. This coincides with 100-period SMA on the 4-hour chart, which if broken decisively will negate any near=term positive bias and prompt aggressive technical selling.

This will further suggest that the XAG/USD has topped out already and pave the way for a further downfall towards 200-period SMA support, currently near the $26.25 region. The corrective slide could further get extended to the $26.00 mark en-route the $25.75-70 support area.

On the flip side, any meaningful move up might now confront immediate resistance near the $27.80 region ahead of the 28.00 mark. This is followed by the $28.25-30 hurdle, which if cleared decisively will set the stage for the resumption of the recent upward trajectory.

The XAG/USD might then aim to surpass an intermediate barrier near the $28.75 area and aim to reclaim the $29.00 round-figure mark. Some follow-through buying beyond the $29.30-35 should allow bulls to make a fresh attempt towards conquering the key $30.00 psychological mark.

XAG/USD 4-hour chart

Technical levels to watch