• Silver attracts fresh buyers on Wednesday and snaps a two-day losing streak.
• Negative oscillators on daily/hourly charts warrant caution for bullish traders.
• A break below 23.6% Fibo. is needed to support prospects for further losses.

Silver regains positive traction during the Asian session on Wednesday, snapping a two-day losing streak and stalling the overnight sharp retracement slide from the vicinity of mid-$24.00s. The white metal is currently placed near the top end of its intraday trading range, around the $23.80 region, though seems to struggle to capitalize on the strength beyond the 200-hour Simple Moving Average (SMA).

From a technical perspective, the recent repeated failures near the 50% Fibonacci retracement level of the downfall witnessed in May and the subsequent break below the $24.00 mark favours bearish traders. This, along with the fact that oscillators on the daily chart have just started drifting in the negative territory, supports prospects for a further near-term depreciating move. That said, it will still be prudent to wait for some follow-through selling below the 23.6% Fibo. support, around the $23.55-$23.50 region, before placing fresh bets.

The XAG/USD might then turn vulnerable to weaken further below the monthly low, around the $23.25 region, and accelerate the slide towards the $23-.00 round figure. Some follow-through selling will expose the $22.70-$22.65 area, or a two-month low touched in May before the commodity eventually drops to test the $22.00 mark.

On the flip side, the $24.00 mark, which coincides with the 38.2% Fibo. level now seems to act as an immediate hurdle. Any further move up might continue to attract fresh sellers and remain capped near the $24.50-$24.55 supply zone, or the 50% Fibo. level. A convincing breakthrough, however, should allow the XAG/USD to aim to reclaim the $25.00 psychological mark and accelerate the positive momentum further towards the $25.35-$25.40 resistance zone. Bulls might then make a fresh attempt towards conquering the $26.00 round figure.

Silver 1-hour chart

Key levels to watch