Silver remained confined in a range above the $25.00 mark through the first half of the European session and consolidated the overnight slump to the lowest level since April 13. The previous day's sharp fall dragged the XAG/USD below the $25.70-65 confluence support – comprising of the very important 200-day SMA and the 61.8% Fibonacci level of the $23.78-$28.75 move up. A subsequent breakthrough the previous monthly swing lows, around mid-$25.00s was seen as a fresh trigger for bearish traders and has set the stage for additional weakness. The negative outlook is reinforced by bearish technical indicators on the daily chart, which was still far from being in the oversold territory. Sustained weakness below the key $25.00 psychological mark will reaffirm the bearish bias and prompt some aggressive technical selling. The XAG/USD might then accelerate the fall further towards the $24.70-65 intermediate support.
The downward trajectory could further get extended towards the $24.00 round-figure mark before the XAG/USD eventually drops to challenge YTD lows, around the $23.80-75 region touched in March. On the flip side, any attempted recovery move might now be seen as a selling opportunity near the mentioned $25.70-65 confluence support breakpoint and runs the risk of fizzling out rather quickly. This is followed by the $26.00 round-figure mark, above which the recovery could further get extended towards the next relevant barrier near the $26.40-50 heavy supply zone. Silver was seen consolidating the previous day’s sharp fall
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Silver remained confined in a range above the $25.00 mark through the first half of the European session and consolidated the overnight slump to the lowest level since April 13. The previous day's sharp fall dragged the XAG/USD below the $25.70-65 confluence support – comprising of the very important 200-day SMA and the 61.8% Fibonacci level of the $23.78-$28.75 move up. A subsequent breakthrough the previous monthly swing lows, around mid-$25.00s was seen as a fresh trigger for bearish traders and has set the stage for additional weakness. The negative outlook is reinforced by bearish technical indicators on the daily chart, which was still far from being in the oversold territory. Sustained weakness below the key $25.00 psychological mark will reaffirm the bearish bias and prompt some aggressive technical selling. The XAG/USD might then accelerate the fall further towards the $24.70-65 intermediate support.
The downward trajectory could further get extended towards the $24.00 round-figure mark before the XAG/USD eventually drops to challenge YTD lows, around the $23.80-75 region touched in March. On the flip side, any attempted recovery move might now be seen as a selling opportunity near the mentioned $25.70-65 confluence support breakpoint and runs the risk of fizzling out rather quickly. This is followed by the $26.00 round-figure mark, above which the recovery could further get extended towards the next relevant barrier near the $26.40-50 heavy supply zone.