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- Silver again failed to break stronger resistance near the $ 26.30 supply zone.
- The setup favors bearish traders and supports the prospect of a possible downside breakout.
- A sustained move past the monthly swing highs is required to negate the short-term negative bias.
Silver continued its battle to capitalize on the move past the strong resistance zone of $ 26.30 and slid down on the last day of trading of the week. The white metal remained depressed during the early North American session, with the bears now awaiting a sustained break below the $ 26.00 mark.
The aforementioned grip is closely followed by the very important 200-day SMA around the $ 25.85 region, and the 61.8% Fibonacci level of $ 23.78-$ 28.75 is hovering near the $ 25.70-$ 65 region. Some follow-up sales below the monthly swing lows of around $ 25.00 are seen as new triggers for bearish traders and set the stage for additional losses.
Meanwhile, the daily chart’s oscillators are in negative territory. This, along with the fact that the XAG / USD repeats no acceptance above the 50% Fibo. found supports the prospect of an eventual downside breakout. Therefore, a subsequent slide towards the next relevant support near the key psychological level of USD 25.00 looks quite possible.
On the flip side, the $ 26.30 supply zone could continue to act as an immediate strong resistance ahead of the weekly highs around the $ 26.45 region. The XAG / USD should appreciate further above the aforementioned barriers. That said, momentum is more likely to lose steam near the monthly swing highs around the $ 26.75-80 range that approaches 38.2% Fibo. Level.
Only a sustained move beyond that will negate short-term negative tendencies and trigger more technical purchases. The XAG / USD could then attempt to break above the USD 27.00 mark and further accelerate the positive momentum towards the 23.6% Fibo. Level, about mid $ 27.00.
Silver daily chart
Technical levels to watch
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