Silver (XAG/USD) extends its upward trajectory, building on last week’s rebound from the $24.35 resistance-turned-support zone, and records gains for the third consecutive day on Monday. The white metal maintains its intraday advances during the first half of the European session, presently trading around the $25.15 mark, just below a more than one-week high reached earlier in the day.
Despite the ongoing bullish momentum, mixed signals from technical indicators on the daily chart suggest a note of caution for bullish traders. As a result, any further upside movement is likely to encounter strong resistance near the $25.65-$25.75 region, marking the year-to-date peak reached in March. This level is closely followed by the December 2023 swing high, situated just ahead of the psychological $26.00 mark. A sustained breakthrough above this level would pave the way for XAG/USD to resume its robust uptrend observed since late February.
Conversely, a pullback below the psychological $25.00 level may attract fresh buying interest near the $24.65 region, limiting downside potential. This support zone coincides with the aforementioned resistance-turned-support area around $24.35, serving as a pivotal point. A decisive breach below this level could shift the bias in favor of bearish traders, potentially dragging silver towards the next significant support near $24.15-$24.10, with further downside momentum targeting the $24.00 mark.
Should selling pressure persist, XAG/USD could face vulnerability, potentially accelerating its descent towards the 200-day Simple Moving Average (SMA) situated around the $23.35-$23.30 region.
As traders navigate these technical levels, they will closely monitor price action and key support and resistance zones to determine future market movements. The interplay between bullish and bearish forces will likely shape silver’s trajectory in the sessions ahead.
