Silver Under Pressure Below 100 Sma

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Silver Under Pressure Below 100 Sma

Silver (Xag/Usd) Under Pressure Below $28.00

Silver (XAG/USD) continues to trade lower for the 2nd day in a row and is seen near the $27.60 level on Monday. The white metal is trading inside a range developed in the last week.

According to analysts, Silver (XAG/USD) remains vulnerable to more downsides, similar to what we saw in the past month.

Silver (Xag/Usd) Trades Below 100 Sma

Technical analysis of Silver (XAG/USD) shows that the white metal failed near the fib retracement (23.6%). This is a sign that we will soon see more selling in the Silver (XAG/USD). That's why it is safe to assume that the short-term outlook for Silver (XAG/USD) remains negative.

Also, the D1 chart shows that all oscillators are in the bearish territory, and there's still enough space between the oversold zone. So, without any risk of going into the oversold zone anytime soon, we can expect the Silver (XAG/USD) to move towards $27.00 and even lower.

Beyond the $27.00 support, the next key levels to watch include $26.50 and then the $26.00 handle. A successful break of this level will serve as a fresh trigger for the bears to drag the white metal even lower. In fact, we can't rule out the possibility of a drop toward the $25.60 support or even the psychological level of $25.00.

On the other hand, a break above $27.75 will lead to a short-covering rally and allow the Silver (XAG/USD) to make some gains. In that case, the first stop will be $28.00, followed by the next one near the $28.50.

Any follow-up of the buying momentum will attract new sellers into the game. Also, the 100 SMA is near $28.80, which is also expected to keep a lid on the bull's advance.

For now, the 100 SMA on the Silver (XAG/USD) chart remains a pivotal point that will distinguish between a bearish and bullish trend.

As long as the Silver (XAG/USD) remains below the 100 SMA, the trend will remain in the hands of the bears. But if the bulls can cross the 100 SMA, it will open up the doors to the next target at $29.45.

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