- Silver appears to be struggling to capitalize on the previous day’s rebound from lows of more than a month.
- The technical setup appears tilted in favor of the bears and supports the prospects for a further decline.
- A sustained move above the $ 27.00 level is needed to nullify the short-term bearish outlook.
Silver has reversed a modest intraday decline and has risen to the upper end of its daily trading range, around the $ 26.75-80 area at the start of the European session on Wednesday, although it has lacked continuation.
The mentioned region coincides with the breaking point of a confluence support comprising the 200-period SMA on the 4-hour chart and a short-term rising trend line extending from mid-January. This, in turn, should now act as a key point for short-term investors.
Meanwhile, the technical indicators on the 1-hour chart have been gaining traction, but have yet to confirm a bullish bias on the 4-hour / day charts. This makes it prudent to wait for some buying above support, now turned into resistance, before opening bullish positions.
Any further movement above that region could face a strong barrier near the $ 27.00 area. That said, a convincing breakout from that level will negate the short-term bearish bias and push the XAG / USD towards the $ 28.00 level with intermediate resistance near the $ 27.60-65 region.
On the other hand, immediate support is near $ 26.50. Sustained weakness below this region will be seen as a new trigger for the bears and will set the stage for an extension of the white metal’s recent pullback from the key psychological level of $ 30.00.
The XAG / USD could accelerate the decline towards the round level of $ 26.00 before finally falling to the congestion zone of $ 25.45-35. The decline could extend further towards the $ 25.00 level on its way to the $ 24.75-70 area and the yearly lows, around the $ 24.00 round level.
Silver 4 hour chart
Silver technical levels
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