Silver struggled to capitalize on its intraday uptick, instead met with a fresh supply near mid-$24.00s on Friday and turned lower for the second successive day. The white metal remained on the defensive through the early North American session and was last seen trading just above the $24.00 mark.

Some follow-through selling below the aforementioned handle will confirm a bearish breakdown through an upward sloping trend-line extending from the $22.00 mark, or the monthly low. This will set the stage for an extension of the overnight sharp pullback from the highest level since August 2021.

That said, technical indicators on the daily chart - though have corrected from higher levels - are still holding comfortably in the bullish territory. This makes it prudent to wait for a convincing break through the ascending trend-line before placing aggressive bearish bets around the XAG/USD.

The next relevant support is pegged near the $23.70 region, below with the downward trajectory could get extended towards the $23.35 area. The XAG/USD could eventually drop below the $23.00 mark, towards the $22.85 support zone.

On the flip side, any meaningful bounce from current levels now seems to confront stiff resistance near the daily swing high, around the $24.50-$24.55 region. Sustained strength beyond will reaffirm the ascending trend-line support and push the XAG/USD back towards the $25.00 mark. If momentum also builds towards energy sanctions, economic uncertainty and demand for inflation protection could easily lift XAG/USD back above its 200-Day Moving Average at $24.20 and into the upper $24.00s. Traders should remain on their toes. Dependent on developments over the weekend, things could go either way quite aggressively next Monday.

Silver To Respect The Hawkish Channel Above DEMA 200

Feb 26 2022