Bulls consolidate near 200-day SMA
- Money prints substantial gains after the fallout from the previous day.
- XAG / USD is eyeing a 200-day SMA as bears gain momentum for the next decline.
- The Momentum Oscillator reflects the bearish bias.
The price of silver (XAG / USD) paused on Friday and rose slightly at the start of the European session. Prices have fallen sharply consecutively over the past two sessions while hitting the low of $ 25.77 on Thursday.
As of this writing, XAG / USD is trading at $ 26.22, up 1.18% for the day.
XAG / USD daily chart
On the daily chart, the white metal saw selling pressure near the $ 28.30 level. The multiple summit formations constitute the confluence zone at this level.
If the price makes sustained moves below the intraday low at $ 25.91, then it could continue with the prevailing bearish momentum. The first target could be found at the 200 day simple moving average (SMA) at $ 25.72.
A breakout of 200-SMA would open a new round of selling coupled with the lower moving average convergence divergence indicator (MACD).
That said, XAG / USD bears would be motivated to test the horizontal support level of $ 25.45, the levels last seen in April. The next in line will be low on April 14 at $ 25.19.
Alternatively, if price decisively crosses the key psychological bar of $ 26.25, it could advance towards the horizontal resistance level of $ 26.70 followed by the previous day’s high of $ 27.24.
A daily close above the mentioned level could prompt the bulls to head for the June 16 high at $ 27.83.