Silver Price Analysis: Bulls consolidate near 200-day SMA

• Silver prints substantial gains after the previous day’s fallout.
• XAG/USD eyes 200-day SMA as bears gather momentum for the next downside.
• Momentum oscillator reflects the bearish biasness.

Silver Price (XAG/USD) took a breather on Friday and edged higher in the early European session. The prices fell sharply consecutively for the past two sessions while touching the low of $25.77 on Thursday. 

At the time of writing, XAG/USD trades at $26.22, up 1.18% for the day.

XAG/USD daily chart

On the daily chart, the white metal has been under selling pressure near the $28.30 level. The multiple top formations constitute the confluence zone at this level.

If price makes sustained moves below the intraday low at $25.91, then it could continue with the prevailing downside momentum. The first target could be found at the 200-day Simple Moving Average (SMA) at $25.72.

A break of 200-SMA would open a fresh round of selling coupled with the receding Moving Average Convergence Divergence ( MACD) indicator.

That said, XAG/USD bears would be motivated to test the $25.45 horizontal support level, the levels last seen in April. The next in line will be low on April 14 at $25.19.

Alternatively, if price decisively breaks the $26.25 key psychological mark then it could progress toward the $26.70 horizontal resistance level followed by the previous day high of $27.24.

A daily close above the mentioned level could prompt the bulls to march toward the June 16 high at $27.83.

XAG/USD additional levels