• Silver consolidates in a range below the 61.8% Fibo. level and the $19.00 round-figure mark.
• The set-up favours bearish traders and supports prospects for a further depreciating move.
• Attempted recovery moves could now be seen as a selling opportunity and remain capped.

Silver struggles to capitalize on the overnight bounce from a four-week low and seesaws between tepid gains/minor losses on Tuesday. The white metal remains on the defensive below the $19.00 mark through the early European session and seems vulnerable to slide further.

This week's convincing break and acceptance below the 61.8% Fibonacci retracement level of the July-August positive move was seen as a fresh trigger for bearish traders. Furthermore, technical indicators on the daily chart are holding deep in the negative territory and are still far from being in the oversold zone. This validates the bearish outlook and supports prospects for a further depreciating move for the XAG/USD.

Hence, a slide back towards the previous day's swing low, around the $18.70 region, en route to the next relevant support near the $18.45-$18.40 area, remains a distinct possibility. The downward trajectory could further get extended and the XAG/USD could eventually drop back to challenge the YTD low, around the $18.15 zone touched in July. This is followed by the $18.00 mark, which if broken should pave the way for additional losses.

On the flip side, the $19.10-$19.15 region (61.8% Fibo. level) now seems to act as immediate strong resistance. Any further recovery could be seen as a selling opportunity and remain capped near the $19.40-$19.50 area. The latter marks a static support breakpoint, which coincides with the 50% Fibo. level and should act as a pivotal point. Sustained strength beyond could allow the XAG/USD to reclaim the $20.00 psychological mark.

Silver daily chart

Key levels to watch