- Silver moves lower for the fifth day in a row and falls to a one-and-a-half week low.
- The setup points to prospects of a drop to retest levels below $24.00, March lows.
- Sustained strength above the $25.00 level is needed to negate the bearish picture.
Silver price (XAG/USD) is extending the previous day’s rejection move from near the $25.00 psychological level and has encountered some continuation selling on Wednesday. This marks the fifth consecutive day of negative movement and drags spot prices to a 1-1/2 week low around the $24.15 region in the mid-European session on Wednesday.
From a technical perspective, the appearance of new sales at higher levels and the subsequent drop favors the bears. With technical indicators on the daily chart remaining in bearish territory and still far from oversold, XAG/USD looks vulnerable to retesting levels below $24.00, March lows.
This latest level coincides with the very important 200-day SMA and should act as a pivotal point for short-term investors. A convincing breakout would set the stage for a drop to the next relevant support near the $23.60 region. XAG/USD could then extend the downward move and eventually drop to the $23.20-$23.15 support zone.
On the other hand, the $24.50 region now seems to act as immediate resistance. Any further move above this level could continue to attract some selling and remain capped near the $25.00 level. Some continuation buying will negate the bearish bias and lift XAG/USD to the $25.35-$25.40 mid-zone en route to the $25.75-$25.80 area.
Silver 4 hour chart
Silver additional levels
Source: Fx Street

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