untitled design

XAG / USD clings to gains near daily highs just below $ 26.50

  • Silver moves higher on Wednesday and recovers a significant portion of the previous day’s losses.
  • The appearance of buying near the $ 26.00 level supports the prospects for further gains.
  • Neutral technical indicators on the daily chart warrant some caution for the bulls.

The price of silver has regained positive traction on Wednesday and has moved to daily highs, around the region of $ 26.35-40, during the European session, reversing a significant part of the previous day’s losses.

The XAG / USD on Tuesday experienced a dramatic pullback from the resistance at $ 26.75-80, where the 38.2% Fibonacci retracement of the move from $ 23.78 to $ 28.75 is located. The pullback, however, has lacked any continuation and has been met with further buying near the round $ 26.00 level.

As XAG / USD had shown resilience below the $ 25.70 confluence support, the emergence of some lower buying supports the prospects for further gains. That said, the oscillators on the daily chart have yet to confirm the bullish bias and warrant some caution.

From current levels, any further movement beyond the horizontal zone of $ 26.45 could continue to face resistance near the region of $ 26.80 (38.2% Fibonacci). It is followed by the $ 27.00 level, above which the XAG / USD could rally towards the 23.6% Fibonacci around $ 27.50.

On the other hand, the $ 26.00 level remains strong support ahead of the $ 25.70 region. The latter comprises the very important 200-day SMA and the 61.8% Fibonacci, which should now act as a key fundamental point. This is followed by the monthly lows for June, around $ 25.50.

Sustained weakness below the aforementioned support levels will shift the short-term bias in favor of the bears. The XAG / USD could then become vulnerable and accelerate the slide to challenge the key psychological level of $ 25.00.

Silver daily chart

Silver technical levels

.

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular