Silver Price Analysis: XAG/USD seems vulnerable near two-week low, around mid-$24.00s

• Silver continued losing ground on Tuesday and dropped to a two-week low, around mid-$24.00s.
• The technical set-up favours bearish traders and supports prospects for a further depreciating move.
• Any meaningful recovery back above the $25.00 mark could now be seen as a selling opportunity.

Silver added to the previous day's heavy losses and witnessed some follow-through selling for the third successive day on Tuesday. This also marked the third day of a negative move in the previous four and dragged spot prices to a fresh two-week low, around mid-$24.00s during the mid-European session.

The XAG/USD has now found acceptance below the key $25.00 psychological mark and seems vulnerable to extending its recent decline from the vicinity of the $27.00 mark or the highest level since June 2021. The outlook is reinforced by the fact that oscillators on the daily chart have been losing traction.

Some follow-through selling below the daily low, which coincides with the 50% Fibonacci retracement level of the $22.00-$26.95 strong move up, will reaffirm the bearish bias. The XAG/USD would then turn vulnerable to accelerate the downfall towards testing sub-$24.00 levels, or the 61.8% Fibo. level.

On the flip side, the 38.2% Fibo. level, around the $25.00 mark, now seems to act as immediate strong resistance. Any subsequent move up could be seen as an opportunity for bearish traders and runs the risk of fizzling out quickly near the $25.75-$25.80 region, or the 23.6% Fibo. level.

This is closely followed by the $26.00 round-figure mark, which if cleared decisively would shift the bias back in favour of bullish traders. The next relevant hurdle is pegged near the $26.40 region, above which the XAG/USD is more likely to make a fresh attempt to conquer the $27.00 mark.

Silver daily chart

Levels to watch