Silver Price Analysis: XAG/USD surrenders modest gains, flat lined above $24.00
- Silver witnessed a modest intraday pullback from the $24.30 static resistance.
- The set-up favours bearish trades and supports prospects for further losses.
- A sustained break below the $23.80 support will reaffirm the negative outlook.
Silver struggled to capitalize on its modest intraday gains, instead met with some fresh supply near the $24.30 static resistance and was last seen trading in the neutral territory.
Given this week's retracement slide from the $24.80-85 region, acceptance below 200-period SMA on the 4-hour chart favours bearish traders. This, coupled with the fact that oscillators on the daily chart maintained their bearish bias and have again started drifting into the negative territory on hourly charts, supports prospects for further losses.
That said, the $23.80 horizontal support should protect any meaningful slide for the XAG/USD. Bearish traders might wait for a sustained break below the mentioned support before placing any aggressive bets. The white metal might then accelerate the fall towards intermediate support near the $23.50-45 region en-route the $23.00 round-figure mark.
On the flip side, sustained break through the $24.30 hurdle might trigger a short-covering move and push the XAG/USD towards the $24.80-85 region. This is followed by the key $25.00 psychological mark, which if cleared decisively might negate the negative bias.
The next relevant resistance to the upside is pegged near the $25.65 zone, above which the momentum could get extended and allow bulls to challenge August monthly swing highs, around the $26.00 mark.
Silver 4-hour chart
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
