Silver Price Analysis: XAG/USD bears await break below $24.80-75 confluence support

• Silver struggled to capitalize on its modest intraday uptick beyond the $25.00 mark.
• The technical set-up supports prospects for a fall back towards the 61.8% Fibo. level.
• A move beyond the $26.00 mark is needed to negate the near-term bearish outlook.

Silver gained some positive traction during the early part of the trading on Tuesday, though struggled to capitalize on the move beyond the $25.00 psychological mark.

From a technical perspective, the XAG/USD, so far, has managed to defend the 200-period SMA on the 4-hour chart. The said support coincides with the lower boundary of over a two-week-old ascending trend channel and should now act as a key pivotal point for traders.

A convincing break below could prompt technical selling and accelerate the slide towards the $24.55 support zone, or the 50% Fibonacci retracement level of the $22.00-$26.95 move up. Some follow-through selling will set the stage for a further depreciating move.

The XAG/USD would then turn vulnerable to slide further towards testing sub-$24.00 levels, or the 61.8% Fibo. level. The downward trajectory could further get extended towards the next relevant support near the $23.40 region en-route the $23.00 round-figure mark.

On the flip side, sustained move beyond the 38.2% Fibo. level or the $25.00 mark is likely to confront stiff resistance near the $25.35-$25.40 region. Some follow-through buying should lift the XAG/USD back towards the 23.6% Fibo. level, around the $25.75-$25.80 area.

This is closely followed by trend-channel resistance and the $26.00 mark, which if cleared decisively would shift the bias in favour of bullish traders. The XAG/USD might then extend the momentum towards the $26.40 intermediate resistance en-route the $27.00 mark.

Silver 4-hour chart

Technical levels to watch