- Silver is struggling to capitalize on the positive post-NFP move and finds new sales on Monday.
- Mixed technical indicators on hourly / daily charts warrant caution before opening aggressive positions.
Silver has seen some new selling on the first day of a new trading week and returned a significant portion of the gains on Friday after a weaker than expected NFP. At the time of writing, the white metal is trading around $ 27.54, shedding 0.83% on the day.
From a technical perspective, XAG / USD has so far managed to comfortably stay above the three-week lows, around the $ 27.00 level touched last week. The level mentioned now should act as a key point for short-term investors.
Technical indicators on the hourly charts have started to move back into negative territory and support prospects for further intraday losses. That said, the neutral oscillators on the daily chart warrant some caution for investors.
Therefore, it will be prudent to wait for sustained weakness below the $ 27.00 level before positioning for any further downside moves. The XAG / USD could accelerate the decline to the previous break point at $ 26.60 on its way to the $ 26.00 level.
The downward move could extend further towards the very important 200-day SMA, currently near the $ 25.75-7 0 region. A convincing break below this region will negate any short-term positive bias and could lead to aggressive technical selling.
On the other hand, the daily highs, around the $ 27.85 region, now appear to act as an immediate hurdle ahead of the $ 28.00 level. This is followed by the $ 28.25-30 resistance zone, which if decisively broken will be seen as a further trigger for the bulls.
The next relevant barrier is near the monthly highs for May, around the $ 28.75 region. Some subsequent purchases should pave the way for a move above the $ 29.00 level, towards the 29.60 resistance zone on the way to the $ 30.00 psychological level.
Silver 4 hour chart
Silver technical levels
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