Silver Price Analysis: XAG/USD remains confined in a range near $25.00 mark

• Silver lacked any firm directional bias and oscillated in a range on the first day of a new week.
• Last week’s failure near the 200-hour SMA suggests that the recent bounce has lost steam.
• The mixed technical set-up warrants some caution before placing aggressive directional bets.

Silver seesawed between tepid gains/minor losses on Monday and remained confined in a narrow trading band, around the $25.00 psychological mark through the early North American session.

From a technical perspective, last week's goodish rebound from the $24.45 area faltered near the 200-hour SMA. The mentioned barrier, currently around the $25.35-$24.40 region, should act as a pivotal point and help determine the next leg of a directional move for the XAU/USD.

Sustained strength beyond the aforementioned barrier will be seen as a fresh trigger for bullish traders and set the stage for a further near-term appreciating move. The XAG/USD might then surpass an intermediate resistance near the $25.75-$25.80 and reclaim the $26.00 round figure.

The momentum could further get extended and push spot prices towards the next relevant hurdle near the $26.40 region en-route the $27.00 mark and mid-$27.00s. That said, neutral oscillators on daily/hourly charts warrant caution before placing aggressive bullish bets around the XAG/USD.

On the flip side, sustained weakness below the $24.85 area might protect the immediate downside ahead of the $24.45 area. Some follow-through selling would make the XAG/USD vulnerable and accelerate the slide towards testing the very important 200-day SMA support near the $24.00 mark.

Silver 1-hour chart

Technical levels to watch