Silver Price Analysis: XAG/USD slides further below $28.00, lowest since May 9

• Silver drifts lower for the second straight day and plummets to a two-and-half-month low.
• The technical setup favors bearish traders and supports prospects for a further downfall. 
• Any attempted recovery move is likely to attract fresh sellers near the $28.55-$28.60 area.

Silver (XAG/USD) remains under heavy selling pressure for the second straight day on Thursday and dives to its lowest level since May 9, around the $27.80 region during the Asian session. 

From a technical perspective, a sustained breakdown through the $28.65-$28.55 horizontal support, which coincides with the 100-day Simple Moving Average (SMA), could be seen as a fresh trigger for bearish traders. Moreover, oscillators on the daily chart have been gaining negative traction and suggest that the path of least resistance for the XAG/USD is to the downside. 

Hence, a further decline towards testing the next relevant support, around the $27.40-$27.30 horizontal resistance breakpoint, en route to the $27.00 mark, looks like a distinct possibility. The downward trajectory could extend further toward the $26.60-$26.55 intermediate support before the XAG/USD eventually drops to the 200-day SMA, currently pegged near the $26.00 mark.

On the flip side, any meaningful recovery attempt now seems to confront stiff resistance around the $28.55-$28.65 region. The said barrier should act as a key pivotal point, which if cleared decisively might trigger a short-covering rally. The XAG/USD might then climb beyond the $29.00 round figure, towards the $29.40-$29.45 area, or the weekly top, en route to the $29.80 region. 

This latter is closely followed by the $30.00 psychological mark, above which the XAG/USD could accelerate the positive move towards the $30.35-$30.40 short-term trading range support breakpoint. The subsequent move up should pave the way for a move towards reclaiming the $31.00 round-figure mark.

Silver daily chart