- Silver stays relatively quiet following Tuesday’s sharp decline.
- Next key support for XAG/USD aligns at $26.00.
- Unless silver manages to hold above $27, sellers are likely to remain in control.
Following the three-day rally, during which silver prices rose by nearly 15%, the XAG/USD pair staged a deep correction and lost more than 8% on Tuesday. Although the pair stays relatively quiet on Wednesday, it doesn’t look like it’s about to turn north, once again. As of writing, XAG/USD was down 0.7% on a daily basis at $26.50.
Silver technical outlook
On the four-hour chart, the Relative Strength Index (RSI) indicator is edging lower and stays around 40, suggesting that there is more room on the downside before the pair becomes technically oversold. Key support aligns at $26, where the 200 and 100 SMAs are located. With a decisive break below that level, the next target could be set at $25, the starting point of the latest upsurge.
On the upside, the immediate resistance is located at $27, the Fibonacci 61.8% retracement level of the rally, ahead of $27.60 (Fibo 50% retracement). Unless silver manages to make a convincing break above $27, sellers are likely to remain in control of price action.
Additional levels to watch for
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