XAG / USD stable above $ 27.20 confluence support

• Silver retraces modest intraday gains to the $ 27.75 region.
• Mixed oscillators warrant some caution for aggressive investors.

Silver has struggled to maintain its modest intraday gains and has quickly retreated to the lower end of its daily trading range, around the $ 27.55 region, during the first half of the European session on Monday.

Despite the pullback, the XAG / USD, so far, has managed to stay above the week-long lows, around the $ 27.20 zone touched on Friday. The aforementioned area marks the support of a nearly two-month uptrend line and should now act as a key point for short-term investors.

Meanwhile, technical indicators on the daily chart remain in positive territory and favor the bulls. That being said, the bearish oscillators on the 1 hour charts and the lack of continuation of the buying warrant some caution before positioning for any significant bullish movement.

From current levels, the uptrend line support near the $ 27.20 area could continue to defend the immediate decline. This level coincides with the 100-period SMA on the 4-hour chart, which if decisively broken will nullify any positive short-term bias and trigger aggressive technical selling.

This will further suggest that the XAG / USD has set a short-term high and will pave the way for a further decline towards the support of the 200-period SMA, currently near the $ 26.25 region. The corrective decline could extend towards the $ 26.00 level on its way to the $ 25.75-70 support area.

On the other hand, any significant bullish movement could now face immediate resistance near the $ 27.80 region, before targeting the $ 28.00 level. This is followed by the $ 28.25-30 hurdle, which if decisively overcome will lay the groundwork for the resumption of the recent upward move.

XAG / USD could then aim to break above an intermediate barrier near the $ 28.75 area and aim to regain the round $ 29.00 level. Some subsequent purchases beyond $ 29.30-35 should allow the bulls to make another attempt to conquer the key psychological level of $ 30.00.

Silver 4 hour chart

Silver technical levels