- Silver price once again manages to find decent support near the confluence support at $ 27.45.
- Mixed oscillators on hourly / daily charts warrant caution before opening directional positions.
Silver has attracted some buying near the lower end of its weekly trading range, around the $ 27.45 region and has risen to fresh daily highs during the early part of the European session on Thursday.
The aforementioned area contains significant confluence support comprising an ascending trend line extending from the yearly lows and the 100-period SMA on the 4-hour chart. This should now act as a key point for short-term investors and help determine the next directional move for XAG / USD.
The white metal, for now, appears to have halted its retracement from the week-long highs around the $ 28.20-25 region touched the previous day. That being said, the lack of subsequent purchases warrants some caution before investors begin to position themselves for any further bullish movement.
Meanwhile, the technical indicators on the hourly charts have started to move into negative territory, although they maintain their bullish bias on the daily chart. This makes it prudent to wait for sustained weakness below said confluence support to confirm a short-term bearish bias.
Some continuation selling below last week’s low near the $ 27.20 area will reinforce a breakout and lead to aggressive technical selling. The XAG / USD could become vulnerable to break below the $ 27.00 level and accelerate the decline to the 200-period SMA, around the $ 26.75 region.
The downward movement could extend further and drag the white metal to the $ 26.25 region, on its way to the $ 26.00 level and the next major support near the $ 25.75-70 zone.
On the other hand, the $ 28.00 level now appears to act as immediate resistance ahead of the $ 28.20-25 zone. A convincing break above the aforementioned hurdle should pave the way for a move past the $ 28.75 intermediate hurdle and allow the bulls to aim to regain the round $ 29.00 level.
Silver 4 hour chart
Silver technical levels
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