- The avocado finds new sales near the region of $ 26.25-30 on the first day of the week.
- The technical setup supports prospects for an eventual break below the $ 25.75-70 confluence area.
- A sustained force beyond the 38.2% Fibonacci is necessary to negate the negative outlook.
Silver has struggled to capitalize on its initial rally and has encountered further selling near the $ 26.25-30 static resistance on the first day of a new trading week. The mentioned barrier coincides with the 50% Fibonacci retracement of the move from $ 23.78 to $ 28.75 and should act as a crucial point for intraday investors.
The intraday slide has dragged XAG / USD below the $ 26.00 level, to fresh daily lows during the European session. The next relevant soprote is near the $ 25.75-70 confluence region, comprising the very important 200-day SMA and the 61.8% Fibonacci, ahead of the June monthly lows around $ 25.50.
The sustained weakness below will be seen as a new trigger for the bears and will set the stage for an extension of last week’s rejection drop from near 38.2% Fibonacci. The negative outlook is reinforced by the fact that the technical indicators on the daily chart are still in bearish territory.
Therefore, a convincing break below the mentioned support levels should pave the way for another short-term bearish move. The XAG / USD could then become vulnerable to extend the downward trajectory towards challenging the key psychological level of $ 25.00.
On the other hand, the $ 26.25-30 region could continue to limit any attempt at a positive move. This is followed by resistance near $ 26.50 ahead of the $ 26.80 supply zone. A sustained force beyond this region will negate any negative short-term bias and trigger some short-hedging movement.
The XAG / USD could then aim to break above the $ 27.00 level and accelerate the positive momentum towards Fibonacci 23.6%, around $ 27.50.
Silver daily chart
Silver technical levels
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