Silver Price Analysis: XAG/USD bears look to seize control near $26.00 mark

Silver once more did not make it through a stronger resistance near the $26.30 supply zone.
The set-up favours bearish traders and supports prospects for an eventual break to the downside.
A sustained move beyond monthly swing highs is required to negate the near-term negative bias.
Silver continued with its struggle to maximize the move beyond the $26.30 strong resistance zone and edged lower on the last trading day of the week. The bearing metal remained depressed through the first North American session, with bears now awaiting a sustained break below the $26.00 mark.

The mentioned handle is closely followed by the vital 200-day SMA, round the $25.85 region, and therefore the 61.8% Fibonacci level of the $23.78-$28.75 move up, near the $25.70-65 region. Some follow-through selling below monthly swing lows, around mid-$25.00s, are going to be seen as a fresh trigger for bearish traders and set the stage for extra losses.

Meanwhile, oscillators on the daily chart are holding within the negative territory. This, along side the very fact that the XAG/USD has repeated did not find acceptance above the $50% Fibo., supports prospects for an eventual break to the downside. Hence, a subsequent slide towards subsequent relevant support, near the key $25.00 psychological mark, looks a definite possibility.

On the flip side, the $26.30 supply zone might still act as an instantaneous strong resistance before weekly tops, round the $26.45 region. Above the mentioned barriers, the XAG/USD is probably going to appreciating further. That said, the momentum is more likely to run out of steam near monthly swing highs, round the $26.75-80 region, which nears the 38.2% Fibo. level.

Only a sustained move beyond will negate near-term negative bias, rather prompt some technical buying. The XAG/USD might then aim to surpass the $27.00 mark and accelerate the positive momentum further towards the 23.6% Fibo. level, around mid-$27.00s.

Silver daily chart

Technical levels to observe
Today last price 26.07
Today Daily Change -0.27
Today Daily Change % -1.03
Today daily open 26.34

Daily SMA20 26.07
Daily SMA50 27.02
Daily SMA100 26.4
Daily SMA200 25.85

Previous Daily High 26.4
Previous Daily Low 26.16
Previous Weekly High 26.78
Previous Weekly Low 25.76
Previous Monthly High 28.56
Previous Monthly Low 25.52
Daily Fibonacci 38.2% 26.31
Daily Fibonacci 61.8% 26.25
Daily Pivot Point S1 26.2
Daily Pivot Point S2 26.06
Daily Pivot Point S3 25.96
Daily Pivot Point R1 26.44
Daily Pivot Point R2 26.54
Daily Pivot Point R3 26.67


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