XAG / USD struggles near the USD 25.00 mark, bearish bias remains

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  • Silver came under renewed selling pressure on Friday and halted this week’s rally.
  • The lineup remains sloping in favor of bearish traders and supports the prospect of additional losses.
  • A sustained move back above the USD 26.00 mark is required to negate the negative near-term outlook.

Silver saw some new sales on the last day of the week and appears to have had two consecutive days of winning streak for now. The white metal recently flirted with daily lows, just above the key psychological level of USD 25.00.

Tech-wise, the commodity’s inability to benefit from this week’s good rebound from its lowest level since April 13th and the emergence of new selling favors bearish traders. This is due to a continued break below the $ 25.70-65 confluence support and supports the prospect of a prolongation of the week-old downtrend.

The mentioned region included the very important 200-day SMA and the 61.8% Fibonacci level of the upside move from $ 23.78 to $ 28.75, which should now act as the fulcrum for short-term traders. Meanwhile, the oscillators on the daily chart are holding in the bearish territory and are still far from being in the oversold territory, adding even more credibility to the negative outlook.

Subsequent weakness below the weekly swing lows in the $ 24.75 area will reinforce the bearish bias and pave the way for a slide towards the round $ 24.00 mark. XAG / USD could slide further and eventually aim to challenge the YTD lows around the $ 23.80-75 region.

On the flip side, any meaningful recovery attempt could be viewed as a selling opportunity and runs the risk of fizzling out pretty quickly near the aforementioned $ 25.70-65-65 confluence support breakpoint. It is followed by the round figure of $ 26.00, above which the recovery could extend towards the next relevant barrier near the heavy supply zone of $ 26.40-50.

Silver daily chart

Technical levels to watch

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