- Silver witnessed some selling on Monday and eroded a part of last week’s recovery gains.
- The set-up seems tilted in favour of bearish traders and supports prospects for further losses.
Silver traded with a mild negative bias through the early North American session and was last seen hovering near the lower end of its intraday trading range, around the $25.40-35 region.
Looking at the technical picture, the XAG/USD, for now, seems to have stalled the recent bounce from mid-$24.00s, or the lowest level since early April stalled near the $25.80 support breakpoint. The mentioned area coincides with the very important 200-day SMA and should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on the daily chart – though have recovered from lower levels – are still holding deep in the bearish territory. This, along with the emergence of some selling near a support-turned-resistance, favours bearish traders and suggests that last week's positive move might have run out of steam.
That said, it will still be prudent to wait for some strong follow-through selling before positioning for any further depreciating move. From current levels, the $25.00 psychological mark might protect the immediate downside, which if broken will reaffirm the negative outlook and prompt aggressive technical selling around the XAG/USD.
The next relevant support is pegged near July monthly swing lows, around mid-$24.00s, below which the XAG/USD seems all set to accelerate the fall further towards the $24.00 round-figure mark. The downward trajectory could eventually drag the white metal back towards challenging YTD lows, around the $23.80-75 region.
On the flip side, any meaningful move up might continue to confront stiff resistance and remain capped near the $25.80 region (200-DMA). A sustained move beyond might trigger a short-covering move and push the XAG/USD further beyond the $26.00 mark. The momentum could further get extended towards the next relevant hurdle near the $26.35-40 supply zone.
Silver daily chart
-637635095566998903.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 extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.