• Silver witnesses some selling for the third successive day on Wednesday.
• Acceptance below the 50 DMA supports prospects for additional losses.
• Any attempted recovery move might now be seen as a selling opportunity.

Silver struggles to capitalize on the previous day's late rebound and meets with a fresh supply near the $20.25-$20.30 region on Wednesday. The white metal remains depressed for the third straight day and slips back below the $20.00 psychological mark during the first half of the European session.

The XAG/USD is currently hovering around over a one-week low touched on Tuesday and now seems to have found acceptance below the 50-day SMA. Bulls now look to the 38.2% Fibonacci retracement level of the $22.52-$18.15 downfall, near the $19.80 region, to offer some support. A convincing break below would expose the next relevant support near the $19.55 area (last week's swing low).

The latter should now act as a key pivotal point, which if broken decisively would be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable. Spot prices could then accelerate the fall towards the 23.6% Fibo. level, around the $19.20-$19.15 region, en route to the $19.00 mark. The downward trajectory could further get extended towards the $18.45-$18.40 area.

On the flip side, the 50% Fibo. level, around the $20.35 region, now becomes an immediate strong hurdle. Any subsequent move up could be seen as a selling opportunity near the $20.65 horizontal zone and remain capped near the 61.8% Fibo. level, around the $20.85 region. That said, some follow-through buying beyond the $21.00 mark could negate the negative outlook for the XAG/USD.

Silver daily chart

Key levels to watch