- Silver found buying near the 200 hourly moving average and extended the advance on Friday.
- The short-term technical setup remains steadily downward.
Silver halted the slide from two-week highs and attracted some buying in on the last trading day of the week. The commodity maintained its modest gains during the first half of the European session and climbed to $ 26.20.
From a technical perspective, XAG / USD, for now, appears to have formed a solid foundation near the 200 hourly moving average, which should now act as a key turning point for short-term traders. Since the bullish move failed to sustain $ 26.30, the bias still appears to be sloping down.
That said, XAG / USD has been showing resilience below the $ 25.70 confluence support, which comprises the very important 200-day SMA and the 61.8% Fibonacci level of the $ 23.78-28.75 move. This makes it prudent to wait for some follow-up sales below the mentioned region before positioning for any further depreciation movement.
Meanwhile, the technical indicators on the day chart, while recovering from negative territory, have yet to confirm a bullish bias. This adds credibility to the short-term negative bias. Therefore, any subsequent positive movement towards the aforementioned confluence region could still be seen as a selling opportunity.
However, a convincing advance, leading to a further move past the $ 26.55-60 barrier, could push the XAG / USD further, towards the Fibonacci retracement of 38.2%, around the $ 26.85 region. This is followed by the $ 27.00 zone, above which the next relevant resistance is near $ 27.50, or the Fibonacci retracement of 23.6%.
On the other hand, any significant pullback below the $ 26.00-25.95 region (200 hourly simple moving average) could continue to find support near the $ 25.70 region before the weekly lows, around the mid $ 25.00. The sustained weakness below could make the XAG / USD vulnerable and pave the way to challenge the key psychological zone of $ 25.00.
Silver day chart
Technical levels
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