- Silver saw some selling for the second day in a row on Wednesday.
- Mixed oscillators on 1-hour and daily charts warrant caution for bears.
- Any subsequent decline is likely to remain capped near the $ 23.20-15 area.
Silver (XAG / USD) has struggled to capitalize on the late rally the day before from multi-day lows and encountered new selling on Wednesday. The white metal maintains its selling tone during the first part of the European session and is trading below the $ 24.00 level, losing more than 1% on the day.
Since the XAG / USD has repeatedly struggled to find acceptance above the 100-day SMA, the latest move down could have turned the bias in favor of the bears. The negative outlook is reinforced by the fact that technical indicators have drifted lower in bearish territory on the 1-hour charts.
That said, the oscillators on the daily chart, while losing positive traction, are still in the bullish territory. Therefore, any further decline could still be seen as a buying opportunity near the $ 23.55 region. This should help limit the decline near the breakout point of strong resistance above at $ 23.20-15.
On the other hand, any significant positive move could continue to face stiff resistance near the 100-day SMA, currently around $ 24.50. A sustained move above this region will be seen as a new trigger for the bulls and will set the stage for the resumption of the month-old bullish move.
Momentum could then push XAG / USD towards monthly highs, around the $ 24.80-85 region, en route to the key psychological level of $ 25.00. The latter coincides with the 50% Fibonacci drop of $ 28.75-$ 21.42, which if exceeded should pave the way for additional gains.
Silver daily chart
Silver technical levels
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