XAG/USD bears are challenging ascending trendline support near $24.00

  • Silver fell for the second day in a row on Friday, dropping to $24.00.
  • A sustained break below an ascending trend line will set the stage for further losses.
  • Bullish oscillators on the daily chart are cautioning aggressive bearish traders.

Silver struggled to capitalize on its intraday uptrend but instead met fresh offer near the mid-$24.00 on Friday and fell for the second straight day. The white metal remained on the defensive during the early North American session and it last traded just above the $24.00 level.

Some follow-up selling below the above level will confirm a bearish breakdown by an up sloping trendline extending from the $22.00 level or the monthly low. This will set the stage for an overnight extension of the sharp pullback from the highest level since August 2021.

However, although correcting from higher levels, the technical indicators on the daily chart are still comfortably staying in bullish territory. Therefore, it is prudent to wait for a convincing break of the ascending trendline before placing aggressive bearish bets around the XAG/USD.

The next relevant support is near the $23.70 region, below that the downside could be extended towards the $23.35 region. XAG/USD might eventually drop below $23.00 towards the $22.85 support zone.

On the downside, any meaningful recovery from current levels now appears to be facing stiff resistance near the daily swing high around the $24.50-$24.55 region. Continued strength above this will reconfirm the ascending trendline support and push the XAG/USD back towards the $25.00 level.

Silver daily chart

Technical levels to watch

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