XAG / USD is making modest gains, flat above $ 24.00

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  • Silver experienced a modest intraday pullback from the static resistance of $ 24.30.
  • The setup favors bearish trades and supports the prospect of further losses.
  • A sustained break below the USD 23.80 support will reinforce the negative outlook.

Silver struggled to benefit from its modest intraday gains, instead encountering some fresh supply near the static resistance of $ 24.30 and was last traded in the neutral territory.

Given this week’s retracement slide out of the $ 24.80-85 area, acceptance below the 200-period SMA on the 4-hour chart favors bearish traders. This, combined with the fact that the daily chart’s oscillators have maintained their bearish bias and have returned to negative territory on the hourly charts support the prospect of further losses.

However, the horizontal support at USD 23.80 should protect any significant slide in the XAG / USD. Bearish traders may wait for a sustained break below the mentioned support before placing aggressive bets. The white metal could then accelerate the decline towards mid-level support near the $ 23.50-45 region on the way to the round $ 23.00 mark.

On the downside, a sustained break through the $ 24.30 hurdle could trigger a short covering move and push the XAG / USD towards the $ 24.80-85 region. This is followed by the key psychological level of $ 25.00 which, if resolutely removed, could undo the negative bias.

The next relevant resistance on the upside is near the $ 25.65 zone, above which momentum could be extended and allow the bulls to challenge August monthly swing highs around the $ 26.00 mark.

Silver 4 hour chart

Technical levels to watch

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