- Silver came under some renewed selling pressure on Friday and stalled this week’s recovery move.
- The set-up remains tilted in favour of bearish traders and supports prospects for additional losses.
- A sustained move back above the $26.00 mark is needed to negate the near-term negative outlook.
Silver witnessed some fresh selling on the last day of the week and for now, seems to have snapped two consecutive days of the winning streak. The white metal was last seen flirting with daily lows, just above the key $25.00 psychological mark.
From a technical perspective, the commodity's inability to capitalize on this week's goodish recovery move from the lowest level since April 13 and the emergence of fresh selling favours bearish traders. This comes on the back of a sustained break below the $25.70-65 confluence support and supports prospects for an extension of the one-week-old downtrend.
The mentioned region comprised the very important 200-day SMA and the 61.8% Fibonacci level of the $23.78-$28.75 move up, which should now act as a pivotal point for short-term traders. Meanwhile, oscillators on the daily chart are holding in the bearish zone and are still far from being in the oversold territory, adding credence to the negative outlook.
Subsequent weakness below weekly swing lows, around the $24.75 region, will reaffirm the bearish bias and pave the way for a slide towards the $24.00 round-figure mark. The XAG/USD could slide further and eventually aim to challenge YTD lows, around the $23.80-75 region.
On the flip side, any meaningful recovery attempt could be seen as a selling opportunity and runs the risk of fizzling out rather quickly near the mentioned $25.70-65 confluence support breakpoint. This is followed by the $26.00 round-figure mark, above which the recovery could get extended towards the next relevant barrier near the $26.40-50 heavy supply zone.
Silver daily chart
-637626384915180706.png)
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD recovers to near 0.6450, shrugs off mixed Australian jobs data
AUD/USD is rebounding to near 0.6450 amid renewed US Dollar weakness in the Asian session on Thursday. The pair reverses mixed Australian employment data-led minor losses, as risk sentiment recovers.
USD/JPY bounces back toward 154.50 amid risk-recovery
USD/JPY bounces back toward 154.50 in Asian trading on Thursday, having tested 154.00 on the latest US Dollar pullback and Japan's FX intervention risks. A recovery in risk appetite is aiding the rebound in the pair.
Gold rebounds on market caution, aims to reach $2,400
Gold price recovers its recent losses, trading around $2,370 per troy ounce during the Asian session on Thursday. The safe-haven yellow metal gains ground as traders exercise caution amidst heightened geopolitical tensions in the Middle East.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.