Silver consolidates and bulls seek upside correction
|- XAG/USD is consolidating the downside impulse.
- Chances of a bullish correction are highly probable.
XAG/USD is flat on the session so far following a down day for the precious metal on a choppy session on Wall Street. The white metal was under pressure and down by over 2.7% into the closing bell.
XAG/USD fell from a high of $25.8250 to a low of $25.0110. At the time of writing, silver is trading at $25.0423 and stuck in a narrow $25.0150 / $25.1085 range.
Meanwhile, the gold to silver ratio rallied by 2% with gold it performing for its safe have qualities and silver's industrial qualities being tied to a rout in the commodities complex.
The CRB index was down by some 2.4% on the day weighed heavily by over a 6% drop in oil prices due to the concerns for demand pertaining to the third European covid wave and slower vaccine rollouts.
Silver technical analysis
XAG/USD is testing the daily demand territory ahead of the break of the psychological $25.000 area.
An upside correction could be on the cards at this juncture.
Prior support that would be expected to act as resistance on a restest could be an optimal bearish entry point.
On the daily chart, the daily support higher up at around $25.8000 has a confluence with a 50% mean reversion of the daily bearish impulse.
However, the first 4-hour structure falls in at $25.4135.
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