Silver Price Analysis: XAG/USD rejects $24.50 and looks vulnerable for another move lower

Silver 4-hour chart

Silver prices have bounced off the consolidation low to make another move lower on Wednesday. The area around USD 24.50 per troy ounce was not the strongest but it worked to great effect for the bears as the market is trading 1.66% lower. The price zone had been sticky in the past especially in late August and once again around 21st September.

The red zone closer to USD 26 per ounce the level is much stronger with around seven firm reactions at the area. If the price can break higher from here this could be one to watch for the future. 

On the downside, the next key level is likely to be the current wave low. This is just above USD 21.50 per ounce and a break could lead to a move into the abyss as there is not too much support below there. 

The indicators are looking very mixed but poised for a move lower. The MACD histogram is green but the bars are diminishing in size and the signal lines are looking like they will cross lower again. The Relative Strength Index has moved up but at the moment may dip below 50 any time now. 

Overall the market looks like it is positioning for another move lower. Although, If the orange level breaks to the upside it could mean the red resistance level is next. Either way, there is more preventing a move up than there is to the downside at the moment. 

Additional levels