Silver Price Analysis: Acceptance below $24.00 mark favours XAG/USD bears

Silver witnessed some selling on Friday and dropped to over one-week lows during the early part of the European session. The white metal now seems to have found acceptance below the $24.00 mark and was last seen trading with intraday losses or nearly 0.70%.

Given that the XAG/USD bulls have repeated failed near the 100-day SMA, the latest leg down might have shifted the bias in favour of bearish traders. The outlook is reinforced by the fact oscillators on hourly charts are holding deep in the negative territory.

That said, positive technical indicators on the daily chart suggest that any further decline could be seen as a buying opportunity near the $23.55 region. This, in turn, should help limit the downside for the XAG/USD near the $23.20-15 resistance breakpoint.

The mentioned region coincides with the 23.6% Fibonacci level of the $28.75-$21.42 downfall, which if broken will reaffirm the bearish bias. The XAG/USD might then turn vulnerable to break below the $23.00 mark and test the next relevant support near mid-$22.00s.

On the flip side, any meaningful positive move might continue to confront stiff resistance near 100-day SMA, around the $24.35 region, which now coincides with the 38.2% Fibo. level. A sustained move beyond will be seen as a fresh trigger for bullish traders.

The subsequent move up has the potential to push the XAG/USD back towards monthly swing highs, around the $24.80-85 region, en-route the key $25.00 psychological mark. The latter coincides with the 50% Fibonacci level of the $28.75-$21.42 downfall.

Some follow-through buying will set the stage for the recent appreciating move from the $21.45 region, or 14-month lows touched on September 30.

Silver daily chart

Technical levels to watch