• Silver oscillated in a narrow trading band through the early European session on Thursday.
• The recent range-bound price action could be categorized as a bearish consolidation phase.
• Neutral technical indicators warrant some caution before positioning for a meaningful slide.

Silver lacked any firm directional bias on Thursday and seesawed between tepid gains/minor losses through the early European session. The white metal was last seen trading just above the key $25.00 psychological mark, nearly unchanged for the day.

From a technical perspective, the XAG/USD has been oscillating in a familiar trading range over the past one-and-a-half week or so. Given the recent sharp pullback from the vicinity of the $27.00 mark or the highest level since June 2021, the range-bound price action could be categorized as a bearish consolidation phase.

That said, technical indicators on the daily chart - though have been losing positive traction - are yet to confirm a bearish bias. Moreover, the emergence of some dip-buying near the 50% Fibonacci retracement level of the $22.00-$26.95 move up warrants caution before placing aggressive bearish bets around the XAG/USD.

In the meantime, immediate resistance is pegged near the $25.40-$25.50 region, above which the momentum could get extended towards the $26.00 mark. Some follow-through buying should accelerate the momentum and lift the XAG/USD towards an intermediate resistance near the $26.40 area en-route the $27.00 round-figure mark.

On the flip side, the $24.75 region seems to protect the immediate downside ahead of the $24.55-$24.50 area (50% Fibo. level). A convincing break below would be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to slide further towards testing sub-$24.00 levels, or the 61.8% Fibo. level.

Silver 4-hour chart

Technical levels to watch