- Silver has been hovering in a range close to the confluence support of $ 24.30-25.
- Mixed oscillators deserve caution before placing aggressive directional bets.
At payment it extended its sideways consolidation price action throughout the mid-European session and remained confined to a tight tight trading range around the $ 24.30-25 region.
The aforementioned area marks confluence support comprising the 200-period Simple Moving Average (SMA) on the 4-hour chart and a short-term rising trend line extending from the August 20 lows. Given the pullback the day before from nearly a month’s highs, a sustained break below will be seen as a new trigger for bearish traders.
Meanwhile, the technical indicators on the hourly charts have been moving into negative territory, but have yet to confirm a bearish bias on the daily chart. This, in turn, makes it prudent to wait for a convincing advance from confluence support before positioning for any further declines.
The next relevant support is pegged near the round figure of $ 24.00 before the horizontal zone of $ 24.80-75. Some subsequent selling could make XAG / USD vulnerable and accelerate the slide towards intermediate support near the $ 23.50-45 zone en route to the round $ 23.00 level.
On the other hand, immediate resistance is pegged near the $ 24.40-50 zone before the overnight swing highs around the $ 24.80-85 zone. This is closely followed by the key psychological level $ 25.00, which if decisively overcome should push XAG / USD to the $ 25.65 zone. Momentum could extend further and allow the bulls to challenge the August monthly swing highs around $ 26.00.
4 hour chart
Technical levels
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