- Silver posted substantial gains after the previous day’s slide.
- XAG / USD is targeting the 200-day SMA as bears pick up momentum for the next drop.
- The momentum oscillator reflects the bearish bias.
The price of silver (XAG / USD) takes a breather on Friday and moves slightly higher at the start of the European session. Prices have fallen sharply for the past two days, falling to a low of $ 25.77 on Thursday.
At the time of writing, the XAG / USD is trading at $ 26.29, up 1.43% on the day.
Silver daily chart
On the daily chart, the white metal has been under selling pressure near the $ 28.30 level. The recent multiple highs have formed a resistance zone at this level.
If the price makes sustained moves below the intraday low at $ 25.91, then it could continue the prevailing downside momentum. The first target could be found at the 200-day SMA at $ 25.72.
A breakout of that level would open a new round of selling, accompanied by a retreating MACD.
With that said, the XAG / USD bears could aim to test the horizontal support level at 25.45, levels last seen in April. The next support will be the April 14 low at $ 25.19.
On the other hand, if the price decisively breaks the key level of 26.2, then the price of silver could progress towards the horizontal resistance level of $ 26.70, followed by the previous day’s high of $ 27.24.
A daily close above the mentioned level could lead the bulls to target the June 16 high of $ 27.83.
Silver additional levels
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