Silver remained confined during a narrow range through the primary half the trading action on Friday.
Neutral technical indicators on the daily chart warrant caution before placing fresh bearish bets.
Sustained weakness below the $27.00 mark would pave the way for an extra near-term decline.
Silver struggled to maximize the previous day’s bounce from three-week lows and witnessed a subdued/range-bound price action on Friday. The commodity remained confined during a narrow trading band, slightly below mid-$27.00s through the primary half the ecu session.
From a technical perspective, the XAG/USD attracted some buying near the $27.00 mark and for now, seems to possess stalled this week’s depreciating move. The mentioned handle should now act as a key pivotal point and help determine subsequent leg of a directional move.
Meanwhile, technical indicators on the daily chart – though are losing positive traction – are yet to verify a bearish bias. This makes it prudent to attend for a few strong follow-through selling below the mentioned handle before positioning for any longer decline.
The XAG/USD might then accelerate the slide to the $26.60 horizontal resistance breakpoint, now turned support en-route the $26.00 round figure. The downward trajectory could further get extended towards the vital 200-day SMA, currently near the $27.75-70 region.
On the flip side, immediate resistance is pegged near the $27.55-60 region, above which bulls are likely to aim back to reclaim the $28.00 mark. this is often followed by the $28.25-30 supply zone, which if cleared decisively are going to be seen as a fresh trigger for bullish traders.
The $28.55 region, before May monthly swing highs, round the $28.75 should act because the next relevant resistance. Some follow-through buying should pave the way for a move beyond the $29.00 mark, towards an intermediate barrier near the $29.60 region and therefore the $30.00 psychological mark.
XAG/USD 4-hour chart