Silver Price Analysis: XAG/USD struggles below $24.00, downside potential seems limited

• Silver witnessed some selling for the second successive day on Wednesday.
• Mixed oscillators on hourly/daily charts warrant caution for bearish traders.
• Any subsequent decline is likely to remain limited near the $23.20-15 area.

Silver struggled to capitalize on the previous day's late rebound from multi-day lows and met with some fresh supply on Wednesday. The white metal maintained its offered tone through the early part of the European session and was seen trading below the $24.00 mark, down nearly 1% for the day.

Given that the XAG/USD has repeatedly struggled to find acceptance above 100-day SMA, the latest leg down might have shifted the bias in favour of bearish traders. The negative outlook is reinforced by the fact that technical indicators have been drifting lower in the bearish territory on hourly charts.

That said, oscillators on the daily chart – though have lost positive traction – are still holding in the bullish territory. Hence, any further decline might still be seen as a buying opportunity near the $23.55 region. This should help limit the downside near the $23.20-15 strong resistance breakpoint.

On the flip side, any meaningful positive move might continue to confront stiff resistance near 100-day SMA, currently around mid-$24.00s. A sustained move beyond will be seen as a fresh trigger for bullish traders and set the stage for the resumption of the one-month-old appreciating move.

The momentum could then push the XAG/USD back towards monthly swing highs, around the $24.80-85 region, en-route the key $25.00 psychological mark. The latter coincides with the 50% Fibonacci level of the $28.75-$21.42 downfall, which if cleared should pave the way for additional gains.

Silver daily chart

Technical levels to watch