- Silver witnessed a aggressive sell on Thursday and finally broke its consolidation range.
- The slightly oversold RSI on the hourly / daily charts helped cap the downside and defend the $ 23.00 level.
- The setup remains skewed in favor of bearish traders and supports the outlook for further weakness.
At payment it underwent further selling pressure on Thursday and eventually broke its two-day consolidated trading range. The white metal accelerated the decline during the early days of the American session and fell to three-day lows, although it managed to find some support near $ 23.00.
Weakness below the horizontal support at $ 23.20 was considered a key trigger for bearish traders and the last leg of a sudden drop for the last hour or so. That said, the slightly oversold RSI on the hourly / daily charts helped cap any further losses and the XAG / USD to bounce away from daily lows.
However, the drop may have already set the stage for an extension of the recent drop seen over the last week or so. XAG / USD appears vulnerable to break below $ 23.00 and accelerate the slide to retest the yearly lows around the $ 22.75 zone touched on Monday.
On the other hand, any significant recovery attempt now could be seen as a selling opportunity and risks rapidly disappearing near the $ 23.55-60 supply zone. A sustained move further could trigger a short hedging move and allow the XAG / USD to target to regain the $ 24.00 level.
1 hour chart
Technical levels
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