Silver Price Analysis: XAG/USD seems vulnerable near one-week low, just above $24.00

• Silver edged lower for the fifth straight day and dropped to a one-and-half-week low.
• The setup supports prospects for a fall to retest sub-$24.00 levels, or the March bottom.
• Sustained strength beyond the $25.00 mark is needed to negate the bearish outlook.

Silver extended the previous day's rejection slide from the vicinity of the $25.00 psychological mark and witnessed some follow-through selling on Wednesday. This marked the fifth successive day of a negative move and dragged spot prices to a one-and-half-week low, around the $24.15 region during the mid-European session.

From a technical perspective, the emergence of fresh selling at higher levels and the subsequent decline favours bearish traders. With technical indicators on the daily chart holding in the bearish territory and still far from being in the oversold zone, the XAG/USD seems vulnerable to retesting sub-$24.00 levels, or the March swing low.

The latter coincides with the very important 200-day SMA and should act as a pivotal point for short-term traders. A convincing break below would set the stage for a fall to the next relevant support near the $23.60 region. The XAG/USD could then extend the downward trajectory and eventually drop to the $23.20-$23.15 support zone.

On the flip side, the $24.50 region now seems to act as immediate resistance. Any subsequent move up might continue to attract some selling and remain capped near the $25.00 mark. Some follow-through buying will negate the bearish bias and lift the XAG/USD to the $25.35-$25.40 intermediate hurdle en-route the $25.75-$25.80 area.

Silver 4-hour chart

Key Levels to watch