- Silver is down from three-week highs and trimmed a portion of overnight gains.
- Mixed technical indicators warrant some caution for aggressive bearish traders.
At payment it witnessed a modest pullback from the three-week highs hit earlier this Tuesday and trimmed some of the strong positive move the day before.
The XAU / USD it was last seen hovering near the lower end of its daily trading range, around the $ 27.75 region. The aforementioned area marks a horizontal resistance breakout point and is followed by support near the 100 hourly SMA, around the $ 27.40 zone.
Meanwhile, technical indicators on the one-hour chart have been gaining negative traction and support the prospects for further weakness. That being said, the bullish oscillators on the 4 hour / day charts warrant caution before positioning for a further decline.
This makes it prudent to wait for any follow-up selling below the aforementioned resistance-turned-support to confirm a short-term bearish bias. XAG / USD could become vulnerable to break below the $ 27.00 round mark.
Subsequent downstream momentum has the potential to drag the white metal toward intermediate support at $ 26.15-10 en route to monthly lows around the $ 25.90 region touched on Feb. 4.
On the other hand, the $ 28.00 level now appears to act as immediate resistance ahead of the $ 28.30-35 region (multi-week highs). A sustained move further should help XAG / USD target recovery at the $ 29.00 level.
1 hour chart