Silver Price Analysis: XAG/USD trades with minor losses, bullish potential seems intact

• Silver edges lower for the second successive day, albeit lacks follow-through selling.
• The technical setup favours bullish traders and supports prospects for further gains.
• Dips could be seen as a buying opportunity near the $24.40-30 resistance breakpoint.

Silver trades with a mild negative bias for the second successive day on Wednesday, though the lack of follow-through selling warrants some caution for aggressive bearish traders. The white metal manages to hold above the overnight swing low and hovers around the $24.80-$24.85 region during the early European session.

From a technical perspective, the downtick could be solely attributed to some profit-taking amid a slightly overbought Relative Strength Index (RSI) on the daily chart. That said, this week's sustained move and acceptance above the $24.30-$24.40 strong horizontal barrier was seen as a fresh trigger for bulls. Moreover, the XAG/USD, so far, has managed to hold its neck above the previous YTD peak, around the $24.65 zone, and seems poised to prolong its recent upward trajectory witnessed over the past month or so.

Hence, any further pullback is likely to attract fresh buyers and remain limited near the $24.40-$24.30 resistance breakpoint, now turned support. The said area should now act as a pivotal point, which if broken decisively might prompt some technical selling and make the XAG/USD vulnerable to weaken below the $24.00 mark, towards testing the weekly low, around the $23.60-$23.55 area. The corrective decline could get extended further towards the $23.15 intermediate support en route to the $23.00 round-figure mark.

Bullish traders, meanwhile, might now wait for some follow-through buying beyond the $25.10-$25.15 region, or a nearly one-year high touched on Wednesday, before placing fresh bets. The XAG/USD might then aim to surpass an intermediate barrier near the $25.35-$25.40 zone and reclaim the $26.00 round-figure mark for the first time since April 2022. The next relevant hurdle is pegged near the $26.20 area ahead of the $26.40-$26.50 region and the 2022 swing high, just ahead of the $27.00 round-figure mark.

Silver daily chart

Key levels to watch