Silver Price Analysis: XAG/USD seems vulnerable below $26.75-80 confluence breakpoint


  • Silver seemed struggling to capitalize on the overnight bounce from over one-month lows.
  • The set-up seems tilted in favour of bearish traders and supports prospects for a further slide.
  • A sustained move beyond the $27.00 mark is needed to negate the near-term bearish outlook.

Silver reversed a modest intraday dip and climbed to the top end of its daily trading range, around the $26.75-80 area during the early European session, albeit lacked follow-through.

The mentioned region coincides with a confluence support breakpoint that comprised of 200-period SMA on the 4-hourly chart and a short-term ascending trend-line extending from mid-January. This, in turn, should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on the 1-hourly chart have been gaining traction but are yet to confirm a bullish bias on 4-hourly/daily charts. This makes it prudent to wait for some follow-through buying beyond the support-turned-resistance before placing bullish bets.

Any subsequent move beyond might confront a strong barrier near the $27.00 area. That said, a convincing breakthrough will negate the near-term bearish bias and push the XAG/USD back towards the $28.00 mark with some intermediate resistance near the $27.60-65 region.

On the flip side, immediate support is pegged near mid-$26.00s. Sustained weakness below will be seen as a fresh trigger for bearish traders and set the stage for an extension of the white metal's recent sharp pullback from the key $30.00 psychological mark.

The XAG/USD might then accelerate the fall towards the $26.00 mark before eventually dropping to the $25.45-35 congestion zone. The downfall could further get extended towards the $25.00 level en-route the $24.75-70 area and YTD lows, around the $24.00 mark.

XAG/USD 4-hourly chart

fxsoriginal

Technical levels to watch

XAG/USD

Overview
Today last price 26.76
Today Daily Change 0.05
Today Daily Change % 0.19
Today daily open 26.71
 
Trends
Daily SMA20 27.16
Daily SMA50 26.5
Daily SMA100 25.39
Daily SMA200 24.03
 
Levels
Previous Daily High 26.9
Previous Daily Low 25.85
Previous Weekly High 28.33
Previous Weekly Low 26.14
Previous Monthly High 30.07
Previous Monthly Low 25.9
Daily Fibonacci 38.2% 26.5
Daily Fibonacci 61.8% 26.25
Daily Pivot Point S1 26.07
Daily Pivot Point S2 25.43
Daily Pivot Point S3 25.02
Daily Pivot Point R1 27.12
Daily Pivot Point R2 27.54
Daily Pivot Point R3 28.18

 

 

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