- Silver rises on Wednesday and recovers a portion of Tuesday’s losses.
- The short-term technical bias remains sloping to the downside.
- Any bullish movement could remain capped near $ 25.00.
Silver is rising on Wednesday, although the rebound stalled after hitting the $ 24.80-85 region. The rally helped the commodity to recoup a portion of the previous day’s losses, when it fell to nearly four-month lows, bottoming out at $ 24.47.
Oversold indicators favored the XAG / USD rebound. The RSI (14) on the 1 hour chart reached extremes, which anticipated a rebound. That said, technical indicators on the day and four-hour charts are still far from being in oversold territory and add credibility to the short-term bearish outlook for silver.
Any subsequent positive movement could still be seen as a selling opportunity near the trading range support break point, around $ 25.00. This, in turn, should keep any bounce off the XAG / USD near the $ 25.40 supply zone limited.
The $ 24.50 zone could act as immediate support. A confirmed drop below would leave XAG / USD vulnerable to further accelerate the decline towards $ 24.00, en route to this year’s lows around the $ 23.80-75 region.
Silver 1 hour chart
Technical levels to observe
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