Silver Price Analysis: XAG/USD retakes $27.00 mark, upside potential seems limited

• Silver gains some positive traction on Wednesday, albeit it lacks follow-through. 
• The setup supports prospects for the emergence of fresh selling at higher levels.
• A sustained strength beyond mid-$27.00 could pave the way for additional gains.

Silver (XAG/USD) attracts some dip-buyers near the $26.75 region during the Asian session on Wednesday, albeit lacks bullish conviction and remains confined in the previous day's broader trading range. The white metal is currently placed just above the $27.00 mark, up around 0.35% for the day. 

From a technical perspective, the recent breakdown through the 100-day Simple Moving Average (SMA) and last week's failure to find acceptance above the $29.00 mark favors bearish traders. Moreover, oscillators on the daily chart are holding deep in negative territory and are still away from being in the oversold zone. This, along with the lack of strong follow-through buying, warrants some caution before positioning for any meaningful recovery from a three-month low reached on Monday.

In the meantime, any subsequent move up is likely to confront some resistance near the $27.50 horizontal zone, above which a bout of a short-covering move could lift the XAG/USD beyond the $28.00 mark, to the $28.20 hurdle. The momentum could extend further, though is likely to remain capped near the 100-day SMA support breakpoint, near the $28.70 region. This is followed by the $29.00 round figure, which if cleared will shift the near-term bias back in favor of bullish traders. 

On the flip side, the $26.60-$26.50 region now seems to have emerged as an immediate support. A convincing break below will reaffirm the negative bias and make the XAG/USD vulnerable to test the May monthly swing low, around the $26.00 mark. The next relevant support is pegged near the $25.60 horizontal zone, below which the white metal could accelerate the fall towards the $25.00 psychological mark before eventually dropping to the $24.40-$24.30 support zone.

Silver daily chart