Silver was able to recoup a significant portion of its early losses, dropping to over one-week lows.
The technical set-up for short-term traders may have changed again in favor of bearish traders.
Negative bias must be confirmed by sustained weakness below the $26.70 confluence.
Just ahead of the $25.70 confluence support, silver attracted some dip-buying and staged a moderate intraday comeback from the one-week lows hit earlier this Thursday.
The XAG/USD was last seen hanging close above the $26.00 mark, towards the upper end of its daily trading range. This week’s retracement decline from the $26.75-80 resistance, or the 38.2 percent Fibonacci level of the $23.78-$28.75 advance up, was halted by the increase.
Meanwhile, technical indications on the daily chart are still in the negative zone, despite the fact that they have recovered from lower levels. This, combined with a lack of substantial follow-through buying, points to a further depreciation in the short future.
However, the advent of some purchasing at lower levels makes it smart to hold off on further negative wagers until a decisive break through the $25.70 region. This includes the crucial 200-day SMA as well as the 61.8 percent Fibo. level, which should serve as a vital point.
A continuation of selling below the June monthly swing lows, in the mid-$25.00s, would reaffirm the bearish bias and make the XAG/USD vulnerable. The white metal’s downward journey might then be extended, pushing it closer to the psychological $25.00 mark.
On the other hand, the 26.25-30 static resistance level, which coincides with the 50% Fibo. level, currently appears to be capping any major advance ahead of the $26.45-50 region. Sustained momentum might push the XAG/USD back towards the 38.2 percent Fibo. mark, which is now around $26.75-80.
The next significant resistance is located near the $27.00 round-figure level, over which the XAG/USD might continue to move towards the 23.6 percent Fibo. level, which is located in the mid-$27.00s./n
