Silver lacked any firm directional bias and seesawed between tepid gains/minor losses, around the $26.00 mark through the early European session.
Looking at the technical picture, the XAG/USD, so far, has managed to hold above the $25.75-70 confluence support. The mentioned region comprises 100-period EMA on the 4-hour chart and the lower boundary of a near four-week-old ascending channel.
Given the recent sharp pullback from the key $30.00 psychological mark, the upward sloping channel constitutes the formation of a bearish flag chart pattern. Sustained weakness below will mark a fresh breakdown and prompt some aggressive technical selling.
A convincing breakthrough will turn the XAG/USD vulnerable to accelerate the fall towards the key $25.00 psychological mark en-route the $24.65-60 horizontal support. Some follow-through selling would allow bearish traders to challenge the $24.00 mark.
The downward trajectory could further get extended back towards YTD lows, around the $23.80-75 region touched on March 31, en-route the $23.20 support zone.
On the flip side, any meaningful positive move might continue to confront stiff resistance near the $26.60-65 region. This, in turn, should cap the XAG/USD near the trend-channel hurdle, currently near the $26.90 area. A sustained move beyond the $27.00 mark will negate the bearish outlook and prompt some short-covering move towards the $27.65-70 resistance zone.
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