- 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|
|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|
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.