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- Silver rallied some buying near the $ 25.00 mark but struggled to rebound strongly.
- The lineup remains sloping in favor of bearish traders and supports the prospect of additional losses.
- Sustained move past the overnight swing highs is needed to negate the short-term negative bias.
Silver found some support near the 61.8% Fibonacci level of the positive move from $ 24.50 to $ 26.00 and climbed near the key psychological level of $ 25.00. However, the uptrend has lacked strong follow-up purchases and the commodity has struggled to recover significantly.
From a technical point of view, the overnight breakthrough held below the 200-hour SMA and the 50% Fibo. The level was seen as a new trigger for bearish traders. This appears to have set the stage for this week’s rejection slide to extend from the $ 26.00 mark or multi-week highs hit on Tuesday.
The outlook is reinforced by the fact that technical indicators on hourly / daily charts are gaining negative traction and are still far from the oversold area. However, it is wise to wait for some repeat sales below the $ 25.00 mark before placing any new bearish bets.
XAG / USD could then accelerate the slide back towards the monthly swing lows in July around the middle of $ 24.00. The downtrend could be extended further, pulling the white metal back towards the $ 24.00 level before the bears attempt to challenge the YTD lows around the $ 23.80-75 region touched in March .
On the other hand, the 50% Fibo. The level around the $ 25.25 region now appears to act as immediate resistance ahead of the 200-hour SMA. Any sustained move beyond that could trigger a short covering move, pushing XAG / USD back towards the overnight swing highs around the middle of USD 25.00.
Silver 1 hour chart
Technical levels to watch
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