Silver Price Analysis: XAG/USD seems vulnerable to slide further while below 100-day SMA

• Silver attracts some buyers and moves away from over a two-month low set on Thursday.
• The technical setup supports prospects for the emergence of fresh selling at higher levels. 
• Strength beyond the 100-day SMA support breakpoint is needed to negate the negative bias.

Silver (XAG/USD) edges higher during the Asian session on Friday and for now, seems to have snapped a two-day losing streak to its lowest level since May 9, around the $27.45 region touched the previous day. The white metal, however, struggles to build on the strength beyond the $28.00 mark and remains on track to register losses for the third successive week. 

From a technical perspective, the overnight breakdown through the June swing low, around the $28.60-$28.55 region, which coincided with the 100-day Simple Moving Average (SMA), was seen as a fresh trigger for bearish traders. Moreover, oscillators on the daily chart have been gaining negative traction and are still away from being in the oversold territory, suggesting that the path of least resistance for the XAG/USD is to the downside.

Hence, any subsequent move up is more likely to attract fresh sellers and remain capped near the $28.55-$28.60 zone, or the 100-day SMA support breakpoint. The said area should now act as a key pivotal point, which if cleared decisively might trigger a short-covering rally. The XAG/USD might then surpass the $29.00 round-figure mark and accelerate the momentum towards the next relevant hurdle near the $29.40-$29.45 region, or the weekly peak.

Some follow-through buying should allow bulls to aim back to reclaim the $30.00 psychological mark. The upward trajectory could extend further towards the $30.35-$30.40 intermediate hurdle before the XAG/USD climbs to the $31.00 round-figure mark en route to the $31.40-$31.45 supply zone and the monthly peak, around the $31.75 region.

On the flip side, the Asian session low, around the $27.65-$27.60 area, could protect the immediate downside ahead of the $27.45 region, or the multi-month low touched on Thursday. A convincing break below the latter could make the XAG/USD vulnerable to accelerate the fall to the $27.00 mark, en route to the $26.60-$26.55 intermediate support, before eventually dropping to the 200-day SMA support, currently pegged near the $26.00 round figure.

Silver daily chart