• Silver loses ground for the second straight day and slides to over a one-week low.
• The downfall marks a bearish breakdown below a one-week-old trading range.
• Bears still need to wait for a sustained break below $20.00 before placing fresh bets.

Silver witnesses selling for the second successive day on Tuesday and drops to over a one-week low, around the $20.00 psychological mark during the mid-European session.

The decline follows last week's failure near the 61.8% Fibonacci retracement level of the $22.52-$18.15 downfall and marks a bearish break below a one-week-old trading range. Adding to this, acceptance below the 50% Fibo. level and the 50-day SMA supports prospects for a further depreciating move for the XAG/USD.

That said, oscillators on the daily chart - though have been losing traction - are yet to confirm the negative outlook. This makes it prudent to wait for sustained weakness below the $20.00 mark before placing fresh bearish bets and positioning for a subsequent slide below the 38.2% Fibo. level, around the $19.80 region.

The next relevant support is pegged near the $19.55 area (last week's swing low), which should now act as a key pivotal point. A convincing break below would shift the bias in favour of bearish traders and expose the 23.6% Fibo. level, around the $19.20-$19.15 region. The XAG/USD could eventually drop to the $19.00 mark.

On the flip side, the 50% Fibo. level, around the $20.35 region, now seems to act as immediate strong resistance. Any subsequent move up could attract fresh selling near the $20.65 horizontal zone. This, in turn, should keep a lid on any further gains for the XAG/USD near the 61.8% Fibo. level, around the $20.85 region.

Silver daily chart

Key levels to watch