Silver remains under some selling pressure for the second straight day, albeit lacks follow-through.
The technical setup favors bearish traders and supports prospects for a further depreciating move.
Any meaningful move up is likely to attract fresh sellers and remain capped near the 100-day SMA.
Silver (XAG/USD) drifts lower for the second straight day on Monday and trades below mid-$27.00s during the Asian session. The white metal, however, remains confined in a broader range held over the past week or so and seems vulnerable to prolonging the recent downward trajectory witnessed over the past month or so.
From a technical perspective, Friday's failure near the 23.6% Fibonacci retracement level of the July-August downfall and some follow-through selling validates the near-term negative outlook for the XAG/USD. Moreover, oscillators on the daily chart are holding deep in negative territory and are still away from being in the oversold zone. Hence, a subsequent slide below the $27.00 mark, towards retesting the multi-month low near the $26.50-$26.45 area touched last week, looks like a distinct possibility.
A convincing break below the latter will be seen as a fresh trigger for bearish traders and drag the XAG/USD further towards the May monthly swing low, around the $26.00 mark. The white metal could extend the descending trend and eventually drop to intermediate support near the $25.60 horizontal zone en route to the $25.00 psychological mark
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.