Silver Price Forecast: XAG/USD bears have the upper hand near three-week low, $30.00 holds the key

• Silver attracts some sellers for the third successive day on Wednesday.
• The technical setup supports prospects for a further depreciating move.
• Any attempted recovery is likely to remain capped near the $31.00 mark. 

Silver (XAG/USD) struggles to capitalize on the overnight bounce from the vicinity of the $30.00 psychological mark, or a three-week low and trades with a negative bias for the third successive day on Wednesday. The white metal is currently placed just above the mid-$30.00s and seems vulnerable to prolonging its retracement slide from the highest level since December 2012 touched last week.

From a technical perspective, the recent repeated failures to find acceptance above the $32.00 mark constitute the formation of a bearish multiple-tops pattern on the daily chart. Moreover, oscillators on the daily chart have started gaining negative traction and validate the near-term bearish outlook for the XAG/USD. Hence, a subsequent slide below the $30.00 mark, towards testing the next relevant support near the $29.75-$29.60 confluence, looks like a distinct possibility.

The latter comprises the 100-day Simple Moving Average (SMA) and the 50-day SMA, which if broken decisively should pave the way for a further near-term depreciating move. The XAG/USD might then accelerate the fall towards the $29.00 mark and eventually drop to the $28.60-$28.50 support zone. 

On the flip side, any attempted recovery might now confront immediate resistance and remain capped near the $31.00 mark. That said, a sustained move beyond could trigger a short-covering move and lift the XAG/USD to the $31.55 hurdle en route to the $31.75-$31.80 region and the $32.00 mark. This is followed by the $32.25 supply zone, above which the white metal could aim to challenge the multi-year peak and make a fresh attempt to conquer the $33.00 round figure.

Silver daily chart