- Silver turned lower for the second straight session on Wednesday.
- The setup supports the prospects for a new movement of intraday depreciation.
- A sustained move past $ 24.00 is needed to negate the bearish bias.
At payment it struggled to preserve its modest intraday gains and updated the daily lows during the early days of the American session. The commodity has now drifted into negative territory for the second day in a row and was last seen trading near the $ 23.00 confluence.
The mentioned area marks the 23.6% Fibonacci level of a sharp decline from the monthly highs and the 100 hourly SMA. Given that the recent rally faced rejection near $ 24.00 on Tuesday, some subsequent selling could be seen as a trigger for bearish traders.
Meanwhile, the technical indicators on the daily chart remain deep in bearish territory and are still far from being in the oversold zone. Additionally, the oscillators on the hourly charts have regained negative momentum, adding credibility to the bearish outlook.
Therefore, a further decline towards intermediate support, around the $ 23.15 region, remains a clear possibility. XAG / USD could drop further below the round level of $ 23.00 and aim to challenge the yearly lows, around the region of the $ 22.20 zone touched last Monday.
On the other hand, any significant positive movement could continue to face strong resistance near the $ 23.90-$ 24.00 region. Sustained strength beyond could trigger some short covering move and lift the XAG / USD towards the 50% Fibonacci retracement around the $ 24.35-40 area.
Silver 1 hour chart
Technical levels
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