- Silver witnessed a modest intraday pullback from the static resistance at $ 24.30.
- The setup favors bearish trading and supports the prospects for further losses.
- A sustained break below the $ 23.80 support will reaffirm the negative outlook.
At payment struggled to capitalize on its modest intraday gains, instead encountered new offers near the static resistance of $ 24.30 and was last seen trading in neutral territory.
Given this week’s retracement drop from the $ 24.80-85 zone, acceptance below the 200-period SMA on the 4-hour chart favors bearish traders. This, coupled with the fact that the oscillators on the daily chart maintained their bearish bias and have started to move back into negative territory on the hourly charts, supports the prospects for further losses.
That said, the horizontal support at $ 23.80 should protect any significant decline for the XAG / USD. Bearish traders could wait for a sustained break below the mentioned support before placing aggressive bets. The white metal could accelerate the slide towards intermediate support near the $ 23.50-45 region en route to the round $ 23.00 level.
On the other hand, a sustained break through the $ 24.30 hurdle could trigger a short hedging move and push the XAG / USD towards the $ 24.80-85 zone. This is followed by the key psychological level of $ 25.00, which if decisively exceeded could negate the negative bias.
The next relevant resistance on the upside is pegged near the $ 25.65 zone, above which momentum could extend and allow the bulls to challenge the August monthly swing highs around the $ 26.00 level.
4 hour silver chart