- Silver saw some selling on Monday and trimmed a portion of last week’s recovery earnings.
- The setup appears skewed in favor of bearish traders and supports the prospects for further losses.
At payment It traded with a slight negative bias during the early American session and was last seen hovering near the lower end of its intraday trading range, around the $ 25.40-35 region.
Looking at the technical picture, XAG / USD, for now, appears to have stalled the recent bounce from $ 24.50, or the lowest level since early April near the $ 25.80 support break point. The aforementioned area coincides with the very important 200-day SMA and should now act as a key point for short-term traders.
Meanwhile, the technical indicators on the daily chart, although they have recovered from lower levels, are still holding deep into bearish territory. This, coupled with the emergence of some selling near support turned resistance, favors bearish traders and suggests that last week’s positive move may have lost steam.
With that said, it will still be wise to wait for solid follow-up sales to occur before positioning yourself for any further depreciation moves. From current levels, the key psychological level of $ 25.00 could protect the immediate slide, which if broken will reaffirm the negative outlook and lead to aggressive technical selling around the XAG / USD.
The next relevant support is tied to the monthly July lows, around $ 24.50, below which the XAG / USD appears poised to accelerate the decline further towards the round $ 24.00 level. The downward trajectory could eventually drag the white metal to challenge the yearly lows around $ 23.80-75.
On the other hand, any significant bullish movement could continue to face stiff resistance and remain capped near the $ 25.80 region (200 DMA). A sustained move further could trigger a short hedging move and push XAG / USD beyond $ 26.00. Momentum could extend further towards the next relevant hurdle near the $ 26.35-40 bid zone.
Silver daily chart
Technical levels
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