Silver Price Analysis: XAG/USD remains confined in a range near $25.00 mark
- Silver lacked any firm directional bias and oscillated in a range on the first day of a new week.
- Last week’s failure near the 200-hour SMA suggests that the recent bounce has lost steam.
- The mixed technical set-up warrants some caution before placing aggressive directional bets.
Silver seesawed between tepid gains/minor losses on Monday and remained confined in a narrow trading band, around the $25.00 psychological mark through the early North American session.
From a technical perspective, last week's goodish rebound from the $24.45 area faltered near the 200-hour SMA. The mentioned barrier, currently around the $25.35-$24.40 region, should act as a pivotal point and help determine the next leg of a directional move for the XAG/USD.
Sustained strength beyond the aforementioned barrier will be seen as a fresh trigger for bullish traders and set the stage for a further near-term appreciating move. The XAG/USD might then surpass an intermediate resistance near the $25.75-$25.80 and reclaim the $26.00 round figure.
The momentum could further get extended and push spot prices towards the next relevant hurdle near the $26.40 region en-route the $27.00 mark and mid-$27.00s. That said, neutral oscillators on daily/hourly charts warrant caution before placing aggressive bullish bets around the XAG/USD.
On the flip side, sustained weakness below the $24.85 area might protect the immediate downside ahead of the $24.45 area. Some follow-through selling would make the XAG/USD vulnerable and accelerate the slide towards testing the very important 200-day SMA support near the $24.00 mark.
Silver 1-hour chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
