Silver Price Analysis: XAG/USD remains on the defensive near $26.00 mark

  • Silver faced rejection near a short-term ascending channel resistance on Thursday.
  • The mentioned channel constitutes the formation of a bearish flag chart pattern.
  • Sustained break through pattern support is needed to confirm the bearish bias.

Silver seesawed between tepid gains/minor losses around the $26.00 mark and consolidated the overnight retracement slide from the $26.60-65 resistance zone.

The mentioned area marks the top boundary of a short-term ascending trend-channel extending from YTD lows, around the $23.80-75 region touched in March. Given the recent sharp pullback from the key $30.00 psychological mark, the channel now seemed to constitute the formation of a bearish flag chart pattern.

Meanwhile, technical indicators on the daily chart have just started moving into the positive territory and are yet to confirm a bearish bias on the 4-hour chart. This, in turn, makes it prudent to wait for a sustained break through the channel support, around the $25.70-65 region before placing fresh bearish bets.

The said support coincides with the 200-period SMA on the 4-hour chart, which if broken decisively will confirm a breakdown and set the stage for a sharp near-term depreciating move. The XAG/USD might then accelerate the downfall towards the key $25.00 psychological mark before dropping to the $24.65-60 horizontal support.

Some follow-through selling would turn the XAG/USD vulnerable to slide towards challenging the $24.00 mark. The downward trajectory could further get extended towards YTD lows, around the $23.80-75 region, en-route the $23.20 support zone.

On the flip side, any meaningful positive move might continue to confront some resistance near the $26.60-65 region. This, in turn, should cap the XAG/USD near the trend-channel hurdle, currently near the $26.85 region. A convincing breakthrough will negate the bearish outlook and prompt some aggressive short-covering move.

The XAG/USD might then accelerate the move to reclaim the $27.00 mark before darting towards the $27.65-70 area.

XAG/USD 4-hour chart


Technical levels to watch


Today last price 26.08
Today Daily Change -0.09
Today Daily Change % -0.34
Today daily open 26.17
Daily SMA20 25.29
Daily SMA50 26
Daily SMA100 25.9
Daily SMA200 25.39
Previous Daily High 26.59
Previous Daily Low 25.98
Previous Weekly High 26.3
Previous Weekly Low 24.68
Previous Monthly High 27.08
Previous Monthly Low 23.78
Daily Fibonacci 38.2% 26.21
Daily Fibonacci 61.8% 26.36
Daily Pivot Point S1 25.9
Daily Pivot Point S2 25.64
Daily Pivot Point S3 25.29
Daily Pivot Point R1 26.51
Daily Pivot Point R2 26.85
Daily Pivot Point R3 27.12



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