- Silver rose on Wednesday and moved away from its 2-1 / 2-month lows.
- The setup still favors bearish traders and supports further loss prospects.
- A sustained move past the $ 26.20-30 hurdle is needed to nullify the bearish bias.
At payment It gained some positive traction Wednesday and was based on the overnight bounce from the vicinity of $ 25.00, or 2-1 / 2-month lows. The rally, however, lacked bullish conviction and silver, so far, has remained capped below $ 26.00.
The XAG / USD, so far, has shown some resistance below an important confluence region comprising the very important 200-day SMA and the 61.8% Fibonacci level of the upward move of $ 23.78-$ 28.75. The mentioned support is pegged near the $ 25.70-65 region and is closely followed by overnight lows, which if broken will set the stage for a further depreciation move.
Meanwhile, the inability of the commodity to capitalize on the recovery attempt favors bearish traders. The negative outlook is reinforced by the fact that the oscillators on the daily chart remain deep in bearish territory. Therefore, any further bullish movement could be seen as a selling opportunity and risks quickly disappearing near the $ 26.20-30 bid zone.
From current levels, the $ 25.55-50 region could continue to protect the immediate slide. Sustained weakness below should pave the way for a slide towards the key psychological level of $ 25.00. Some subsequent selling below the $ 24.80 region would make XAG / USD vulnerable to extend the slide towards the $ 24.00 level en route to annual lows around $ 23.80-75, the zone touched in March.
Conversely, a sustained strength beyond the strong $ 26.20-30 barrier will negate the bearish outlook and trigger some short covering move. The XAG / USD could accelerate the positive move towards the $ 26.55-60 hurdle before eventually climbing to the $ 26.85 region, or 38.2% of the Fibonacci level. This is closely followed by $ 27.00, above which the next relevant hurdle is pegged near the 23.6% Fibonacci level, around $ 27.00.
Daily chart
Technical levels
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