- Silver oscillated in a narrow trading band through the early European session on Thursday.
- The recent range-bound price action could be categorized as a bearish consolidation phase.
- Neutral technical indicators warrant some caution before positioning for a meaningful slide.
Silver lacked any firm directional bias on Thursday and seesawed between tepid gains/minor losses through the early European session. The white metal was last seen trading just above the key $25.00 psychological mark, nearly unchanged for the day.
From a technical perspective, the XAG/USD has been oscillating in a familiar trading range over the past one-and-a-half week or so. Given the recent sharp pullback from the vicinity of the $27.00 mark or the highest level since June 2021, the range-bound price action could be categorized as a bearish consolidation phase.
That said, technical indicators on the daily chart - though have been losing positive traction - are yet to confirm a bearish bias. Moreover, the emergence of some dip-buying near the 50% Fibonacci retracement level of the $22.00-$26.95 move up warrants caution before placing aggressive bearish bets around the XAG/USD.
In the meantime, immediate resistance is pegged near the $25.40-$25.50 region, above which the momentum could get extended towards the $26.00 mark. Some follow-through buying should accelerate the momentum and lift the XAG/USD towards an intermediate resistance near the $26.40 area en-route the $27.00 round-figure mark.
On the flip side, the $24.75 region seems to protect the immediate downside ahead of the $24.55-$24.50 area (50% Fibo. level). A convincing break below would be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to slide further towards testing sub-$24.00 levels, or the 61.8% Fibo. level.
Silver 4-hour chart
Technical levels to watch
|Today last price||25.14|
|Today Daily Change||0.04|
|Today Daily Change %||0.16|
|Today daily open||25.1|
|Previous Daily High||25.2|
|Previous Daily Low||24.68|
|Previous Weekly High||25.95|
|Previous Weekly Low||24.47|
|Previous Monthly High||25.62|
|Previous Monthly Low||22.01|
|Daily Fibonacci 38.2%||25|
|Daily Fibonacci 61.8%||24.88|
|Daily Pivot Point S1||24.79|
|Daily Pivot Point S2||24.47|
|Daily Pivot Point S3||24.26|
|Daily Pivot Point R1||25.31|
|Daily Pivot Point R2||25.52|
|Daily Pivot Point R3||25.84|
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