Silver Price Analysis: XAG/USD struggles for direction, stuck in a range around $25.00

Silver oscillated in a narrow trading band through the early European session on Thursday.
The recent range-bound price action could be categorized as a bearish consolidation phase.
Neutral technical indicators warrant some caution before positioning for a meaningful slide.

Haresh Menghani FXStreet

Silver lacked any firm directional bias on Thursday and seesawed between tepid gains/minor losses through the early European session. The white metal was last seen trading just above the key $25.00 psychological mark, nearly unchanged for the day.

From a technical perspective, the XAG/USD has been oscillating in a familiar trading range over the past one-and-a-half week or so. Given the recent sharp pullback from the vicinity of the $27.00 mark or the highest level since June 2021, the range-bound price action could be categorized as a bearish consolidation phase.

That said, technical indicators on the daily chart - though have been losing positive traction - are yet to confirm a bearish bias. Moreover, the emergence of some dip-buying near the 50% Fibonacci retracement level of the $22.00-$26.95 move up warrants caution before placing aggressive bearish bets around the XAG/USD.

In the meantime, immediate resistance is pegged near the $25.40-$25.50 region, above which the momentum could get extended towards the $26.00 mark. Some follow-through buying should accelerate the momentum and lift the XAG/USD towards an intermediate resistance near the $26.40 area en-route the $27.00 round-figure mark.

On the flip side, the $24.75 region seems to protect the immediate downside ahead of the $24.55-$24.50 area (50% Fibo. level). A convincing break below would be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to slide further towards testing sub-$24.00 levels, or the 61.8% Fibo. level.

Silver 4-hour chart

Technical levels to watch

XAG/USD

Overview
Today last price	25.14
Today Daily Change	0.04
Today Daily Change %	0.16
Today daily open	25.1

Trends
Daily SMA20	25.23
Daily SMA50	24.13
Daily SMA100	23.67
Daily SMA200	23.96

Levels
Previous Daily High	25.2
Previous Daily Low	24.68
Previous Weekly High	25.95
Previous Weekly Low	24.47
Previous Monthly High	25.62
Previous Monthly Low	22.01
Daily Fibonacci 38.2%	25
Daily Fibonacci 61.8%	24.88
Daily Pivot Point S1	24.79
Daily Pivot Point S2	24.47
Daily Pivot Point S3	24.26
Daily Pivot Point R1	25.31
Daily Pivot Point R2	25.52
Daily Pivot Point R3	25.84

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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