- Silver remained range bound heading into Wednesday’s European session.
- The price action favors bearish traders and supports prospects for an extension of the recent decline.
- Continued strength above the $23.00 round number is needed to negate the short-term bearish outlook.
Silver struggled to gain meaningful traction on Wednesday, oscillating in a tight trading band just above the mid-$22.00 heading into the European session.
Given the previous day’s rejection from $23.00, the lack of buying interest favors bearish traders and supports prospects for the resumption of a two-week-old downtrend. The negative bias is compounded by the fact that technical indicators remain deep in bearish territory on the 4-hour/daily charts.
Some subsequent selling below the $22.50 area will confirm the prospects and pull the XAG/USD pair back towards last week’s swing high around the $22.15 region. Closely followed by the $22.00 level which if decisively broken should pave the way for a slide towards the double bottom support challenge around the $21.40 zone.
On the downside, $23.00 could continue to act as an immediate strong resistance ahead of the $23.35-$23.40 region. Continued strength above will negate the bearish outlook and lead to some technical buying. This should allow XAG/USD to surpass $24.00 and continue higher towards the YTD high around the $24.70 region.
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