Acceptance below the $ 24.00 mark favors XAG / USD bears
- Silver slid down Friday, extending its recent retreat from monthly swing highs.
- Mixed oscillators on hourly / daily charts require caution for aggressive bearish traders.
Silver saw some selling on Friday and fell to over 1 week lows at the start of European trading session. The white metal now appears to have found acceptance below the $ 24.00 mark and was most recently traded with intraday losses of nearly 0.70%.
Given that the XAG / USD bulls have repeatedly failed near the 100-day SMA, the recent downtrend may have shifted the bias in favor of bearish traders. The outlook is reinforced by the fact that the hourly chart oscillators are holding deep in negative territory.
However, positive technical indicators on the daily chart suggest that any further decline could be viewed as a buying opportunity near the $ 23.55 region. This, in turn, should help limit the bearish movement of the XAG / USD near the resistance breakpoint of $ 23.20-15.
The mentioned region coincides with the 23.6% Fibonacci level of the decline from $ 28.75 to $ 21.42 which, if breached, will reinforce the bearish trend. The XAG / USD could then become vulnerable to drop below the $ 23.00 mark and test the next relevant support near the middle of $ 22.00.
On the flip side, any significant positive move could continue to meet stiff resistance near the 100-day SMA around the $ 24.35 region, which now coincides with the 38.2% fibo. Level. Any sustained move beyond that is seen as a new trigger for bullish traders.
The subsequent upward movement has the potential to push XAG / USD back towards the monthly swing highs around the $ 24.80-85 region on the way to the key psychological level of $ 25.00. The latter coincides with the 50% Fibonacci level of the decline from $ 28.75 to $ 21.42.
Some follow-up buying will set the stage for the recent appreciation move from the $ 21.45 region or the 14-month low hit on September 30th.
Silver daily chart
Technical levels to watch