Silver Price Analysis: XAG/USD seems vulnerable, short-term trading range breakdown in play

• Silver attracts some buyers during the Asian session on Thursday, albeit lacks follow-through.
• The overnight sustained breakdown through a short-term trading range favors bearish traders.
•  Any subsequent move-up could attract fresh sellers and remain capped near the $31.00 mark.

Silver (XAG/USD) ticks higher during the Asian session on Thursday and moves away from a two-week low, around the $30.00 psychological mark touched the previous day. The white metal currently trades around the $30.40 region, up nearly 0.35% for the day, though lacks bullish conviction. 

From a technical perspective, the recent failure to build on the momentum beyond the $31.40 supply zone and the overnight breakdown through a short-term trading range support could be seen as a fresh trigger for bearish traders. That said, neutral oscillators on the daily chart warrant caution and make it prudent to wait for some follow-through selling below the $30.00 mark before positioning for any further depreciating move. 

The XAG/USD might then weaken further below the $29.70 horizontal zone and test the next relevant support near the $29.15 region. This is closely followed by the $29.00 mark, which if broken decisively will expose the June monthly swing low, around the $28.60-$28.55 area. The white metal could eventually drop to the 100-day Simple Moving Average (SMA), currently pegged near the $28.00 round-figure mark.

On the flip side, any subsequent move up is likely to confront stiff resistance ahead of the $31.00 mark. A sustained strength beyond has the potential to lift the XAG/USD back towards the $31.40 supply zone. Some follow-through buying, leading to a subsequent move beyond the monthly peak, around the $31.80 area, should allow bulls to retake the $32.00 mark and challenge the YTD peak, near the mid-$32.00s touched in May.

Silver 4-hour chart