Title: Silver Price Analysis: XAG/USD clings to modest gains, the upside seems limited

Jun 30, 2021 1:05:41 PM GMT

By: AnalysisWatch

Silver won a few high-quality traction on Wednesday and constructed at the in a single day bounce, from the region of mid-$25.00s or two-and-half-month lows. The uptick, however, lacked any bullish conviction and the commodity, so far, remained capped beneath the $26.00 round-determine mark.

The XAG/USD, so far, has been displaying resilience beneath a critical confluence location comprising of the very critical 200-day SMA and the 61.8% Fibonacci degree of the $23.78-$28.75 pass up. The referred to assist is pegged close to the $25.70-65 location and is carefully accompanied through in a single day swing lows, which if damaged will set the degree, in addition, depreciating pass.

Meanwhile, the commodity's lack of ability to capitalize at the tried healing pass favors bearish traders. The terrible outlook is strengthened through the truth that oscillators at the day by day chart are protecting deep in the bearish territory. Hence, any additional pass-up is probably visible as a promoting possibility and runs the chance of really fizzling out fast close to the $26.20-30 deliver zone.

From contemporary levels, the $25.55-50 location may keep guarding the instant downside. The sustained weak spot beneath must pave the manner for a fall toward the key $25.00 mental mark. Some follow-thru promoting beneath the $24.80 location could flip the XAG/USD susceptible to amplify the slide toward the $24.00 mark en-course YTD lows, around the $23.80-75 vicinity touched in March.

Conversely, sustained energy past the $26.20-30 robust barrier will negate the bearish outlook and activate a few short-masking passes. The XAG/USD may then boost up the high-quality pass toward the $26.55-60 hurdle earlier than sooner or later hiking to the $26.85 location, or the 38.2% Fibo degree. This is carefully accompanied through the $27.00 mark, above which the subsequently applicable hurdle is pegged close to the 23.6% Fibo Level, round mid-$27.00s.