XAG / USD could extend the slide towards the $ 25 level

  • Silver prices remain relatively calm after Tuesday’s sharp decline.
  • The next key support for the XAG / USD is at $ 26.00.
  • Unless silver manages to stay above $ 27.00, sellers are likely to remain in control.

Following the three-day rally, during which silver prices rose nearly 15%, XAG / USD made a deep correction and lost more than 8% on Tuesday. Although silver prices remain relatively quiet on Wednesday, they do not appear to be about to turn higher once again. At the time of writing, the XAG / USD is down 0.76% on the day, trading at $ 26.63.

Silver technical outlook

On the four-hour chart, the RSI is turning down and holding around the 40 level, which suggests that there is more room to the downside before the XAG / USD enters oversold conditions. Key support is at $ 26.00, where the 100 and 200 SMAs are. With a decisive break below that level, the next target could be set at $ 25.00, the starting point of the latest rally.

On the upside, immediate resistance is at $ 27.00, the 61.8% Fibonacci retracement of the last move, ahead of $ 27.60 (50% Fibonacci retracement). Unless silver makes a convincing break above $ 27.00, sellers are likely to remain in control of the price action.

Silver 4 hour chart

The payment

Silver technical levels

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