XAG / USD bears flirt with confluence support at $ 24.30- $ 25
- Silver has hovered in a range near the confluence support of $ 24.30 to $ 25.
- Mixed oscillators warrant caution before placing aggressive directional bets.
Silver extended its lateral consolidation action on price throughout the mid-European session and remained confined in a narrow trading band around the $ 24.30-25 region.
The mentioned area marks confluence support comprising a 200 period SMA on the 4 hour chart and a short term ascending trendline extending from the lows of August 20. Considering the previous day’s pullback from nearly one-month highs, a sustained breakout below will be seen as a new trigger for bearish traders.
Meanwhile, technical indicators on the hourly charts have drifted into negative territory but have yet to confirm a bearish bias on the daily chart. This, in turn, makes it prudent to wait for a convincing breakthrough of said confluence support before positioning for another fall.
The next relevant support is near the round number of $ 24.00 in front of the horizontal area of $ 24.80-75. Some follow-up selling could make XAG / USD vulnerable and accelerate the slide to intermediate support near the $ 23.50-45 region en route to the $ 23.00 mark.
On the flip side, immediate resistance is pegged near the $ 24.40-50 region ahead of the overnight highs, around the $ 24.80-85 region. This is closely followed by the key psychological mark of $ 25.00, which, if crossed decisively, should push XAG / USD towards the $ 25.65 area. The momentum could still carry over and allow the bulls to challenge the August monthly highs around the $ 26.00 mark.