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.


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