- Silver price is trading in a tight range during the European session on Thursday.
- The recent range-bound price action could be classified as a bearish consolidation phase.
- Neutral technical indicators warrant some caution before positioning for a significant drop.
The price of silver (XAG/USD) lacks a firm directional bias on Thursday and oscillates between tepid gains and minor losses during the European session. At time of writing, the white metal remains just above the key psychological level of $25.00.
From a technical perspective, XAG/USD has been trading in a range for the past week and a half. Given the recent sharp pullback from near the $27.00 level, the highest level since June 2021, the range bound price action could be classified as a bearish consolidation phase.
That said, the technical indicators on the daily chart, although they have been losing positive traction, have yet to confirm a bearish bias. Also, the appearance of some buying near the 50% Fibonacci retracement of the $22.00-$26.95 move warrants caution before opening aggressive bearish positions around XAG/USD.
Meanwhile, immediate resistance is near the $25.40-$25.50 region, above which the momentum could extend towards the $26.00 level. Some continuation buying should accelerate the momentum and lift XAG/USD towards intermediate resistance near the $26.40 area en route to the $27.00 level.
On the other hand, the $24.75 region seems to defend the immediate drop before the $24.55-$24.50 area (50% Fibonacci). A convincing break below this level would be seen as a new trigger for the bears and make XAG/USD vulnerable to drop towards the $24.00 level.
Silver 4 hour chart
Silver technical levels
Source: Fx Street
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