XAG/USD is holding steady near the $30.55 level, consolidating around the 100-day Simple Moving Average (SMA)
FUNDAMENTAL OVERVIEW:
- Silver struggles to gain significant momentum on Monday, hovering near a two-week low.
- Bears are waiting for a decisive break and sustained move below the 100-day SMA before considering new short positions.
- Any potential recovery is expected to be viewed as a selling opportunity and is likely to face resistance.
Silver (XAG/USD) starts the new week on a cautious note, consolidating the pullback from last week’s one-month high. The white metal stays near the two-week low reached on Friday, trading around $30.55, near the 100-day Simple Moving Average (SMA), during the Asian session.
From a technical standpoint, a move below the 100-day SMA would signal a new bearish trigger, especially following last week’s rejection near the $32.35 horizontal resistance. With daily chart oscillators beginning to show negative momentum, XAG/USD could become susceptible to further declines, potentially falling below the $30.00 psychological level and testing the November lows around the $29.70-$29.65 zone.
On the other hand, any significant recovery is likely to face strong resistance around the $31.00 level, capping further gains. However, a sustained break above this level could spark a short-covering rally, pushing XAG/USD towards the $31.75 horizontal resistance. The upward momentum could continue, targeting the $32.00 round figure, and eventually testing the monthly swing high near the $32.35 zone reached last week.
SILVER TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Silver is trading within a down channel.
Silver is moving below 20&50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 30.75
Immediate support level: 30.28
HOW TO TRADE SILVER
Silver experienced a sharp rise but faced significant rejection, quickly reversing to the downside. After finding support, it attempted a rebound, but was unable to sustain the upward momentum and was once again rejected. As a result, silver has returned to the support zone, where it is currently trading. If silver can hold this key level, there is potential for a move higher. However, if the price breaks below this support zone, it could continue its downward trajectory.