- The price of silver struggles to gain significant traction on Monday and languishes near a two-week low.
- The bears wait for a sustained breakout and acceptance below the 100-day SMA before opening new positions.
- Any recovery attempt could be seen as a selling opportunity and is likely to remain capped.
The price of Silver (XAG/USD) begins the new week on a moderate note and consolidates last week’s retracement decline from or above a one-month high. The white metal remains near a two-week low touched on Friday and trades around the $30.55 region, or the 100-day SMA, during the Asian session.
From a technical perspective, acceptance below the 100-day SMA will be seen as a new trigger for bears against the backdrop of last week’s failure near the $32.35 horizontal resistance. As the oscillators on the daily chart have started to gain negative traction, $.
Some follow-through selling should pave the way for an extension of the downward trajectory towards the $29.10-$29.00 support zone en route to the $28.40-$28.35 region before XAG/USD finally drops to the round figure of $28.00.
On the other hand, any significant recovery attempt now appears to face stiff resistance and remain capped near the $31.00 level. Sustained strength beyond, however, could trigger short covering and lift XAG/USD towards the $31.75 horizontal barrier. Momentum could extend further towards the $32.00 round figure en route to the monthly high, around the $32.35 horizontal zone touched last week.
Silver daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
