Silver Price Analysis: XAG/USD remains depressed below $23.00, bears flirt with 38.2% Fibo.

• Silver drifts into negative territory for the third straight day on Wednesday.
• The mixed technical setup warrants caution for aggressive bearish traders.
• Bulls need to wait for sustained strength beyond the $23.70 supply zone.

Silver meets with a fresh supply following an intraday uptick to the $23.00 round figure and turns lower for the third successive day on Wednesday. The white metal remains depressed through the early part of the European session and currently trades around the $22.85 region, down nearly 0.30% for the day.

From a technical perspective, the XAG/USD last week struggled to find acceptance above a confluence barrier comprising the 50% Fibonacci retracement level of the May-October slide and the very important 200-day Simple Moving Average (SMA). The subsequent failure near the $23.70-$23.75 strong horizontal resistance supports prospects for a further depreciating move. That said, oscillators on the daily chart are holding comfortably in the positive territory and warrant some caution for aggressive bearish traders.

Hence, any further decline might continue to find some support near the overnight swing low, around the $22.70-$22.65 region. The said area coincides with the 38.2% Fibo. level and should act as a key pivotal point for intraday traders. A convincing break below might prompt some technical selling and drag the XAG/USD to the $22.30-$22.25 horizontal resistance breakpoint now turned support. The downward trajectory could get extended further towards the $22.00 round-figure mark, representing 23.6% Fibo. level.

On the flip side, momentum back above the $23.00 mark is likely to confront stiff resistance near the aforementioned confluence hurdle, around the $23.30-$23.35 zone, and remain capped near the $23.70 area. Some follow-through buying should allow the XAG/USD to test 61.8% Fibo. level, around the $24.00 round-figure mark, en route to the next relevant resistance near the $24.15-$24.20  region. Some follow-through buying will mark a fresh breakout and shift the near-term bias in favour of bullish traders.