- Silver consolidates near the $25.80 after a free fall from the $28.00 level.
- XAG/USD is holding above 200-day SMA indicating emergence of support here.
- Oversold momentum oscillators warn against aggressive directional bids.
Silver Price (XAG/USD) treads water in the Asian session. Prices move in a very close trading band with no meaningful traction.
At the time of writing, XAG/USD is trading at $25.89, down 0.02% for the day.
XAG/USD daily chart
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On the daily chart, the white metal has been consolidating in a broader trading range of $27.00-$28-50, before breaking the range on June 16. XAG/USD tested the levels last seen in April.
If price makes sustained moves above the intraday high at $25.96, then it could continue to move higher. The first target could be found at the previous day’s high at $26.29.
The Moving Average Convergence Divergence ( MACD) indicator holds onto the oversold zone with stretched selling conditions. Any uptick in the MACD would allow bulls to take over the $26.60 horizontal resistance level.
That said, XAG/USD would be motivated to test the high of June 17 in the vicinity of the $27.25 area.
Alternatively, if price decisively breaks the 200-day Simple Moving Average (SMA) at $25.70, then it could meet its first lower target at the low of June 21 at $25.55.
A daily close below the mentioned level could prompt the bulls to march toward April 15 low at $25.32 followed by the $25.00 horizontal support level.
XAG/USD additional level