Below the 20-day SMA, silver is still under pressure on the downside.
Additional gains could be conceivable if the market breaks strongly over the $26.20 barrier.
Aggressive directional bids should be avoided if momentum oscillators are oversold.
The price of silver (XAG/USD) makes multiple tries to rise but fails to maintain the upward momentum. Prices move in a very narrow trading zone that is skewed to the upside.
The XAG/USD currency pair is now trading at $26.14, down 0.10 percent on the day.
On the daily chart, the white metal is consolidating below the Fibonacci retracement level of 38.2 percent, which extends from the low of $23.77.
If price climbs consistently above the intraday high of $26.19, it may be able to shake off the preceding day’s bearish price trend.
The initial goal, at $26.51, can be found at the 20-day Simple Moving Average (SMA).
The Moving Average Convergence Divergence (MACD) indicator maintains a neutral posture in the oversold zone. Bulls would be able to retest the $27.00 horizontal resistance level if the MACD rose.
XAG/USD would then go for $27.50, which is the 23.6 percent Fibonacci retracement level.
Alternatively, with the previous day’s low of $26.01, a price move lower could entice bears to act.
If the price closes below the indicated level on a daily basis, the $25.85 horizontal support level will be breached.
Multiple support formations near $25.85 make it a critical trading level; a break would take the market to the April 15 low of $25.32./n
