The Silver Downward Trajectory Could Further Get Extended| FXMAG.COM

Silver 4-hour chart

Silver struggles to gain any meaningful traction on Thursday and remains below the $24.00 mark.
The overnight break below two-month-old ascending trend-line support favours bearish traders.
Mixed oscillators on hourly/daily charts warrant caution before positioning for a further decline.

Silver struggles to capitalize on its modest intraday uptick and remains below the $24.00 round figure heading into the European session on Thursday. The technical set-up, meanwhile, supports prospects for a further pullback from over an eight-month high touched earlier this week.

The overnight break below a two-month-old ascending trend-line was seen as a fresh trigger for bearish traders. Furthermore, technical indicators on hourly charts have been drifting lower and add credence to the negative outlook. That said, oscillators on the daily chart - though have been losing traction - are yet to confirm a bearish bias. This makes it prudent to wait for some follow-through selling below the 100-period SMA on the 4-hour chart, currently around the $23.65 region, before positioning for any meaningful downside.

The XAG/USD might then accelerate the corrective fall towards testing sub-$23.00 levels. The downward trajectory could further get extended towards intermediate support near the $22.60-$22.55 region, below which spot prices could drop to the next relevant support near the $22.10-$22.00 horizontal zone. The latter should act as a strong base for the white metal, which if broken decisively will set the stage for an extension of the depreciating move.

On the flip side, the $24.00 round-figure mark now seems to act as an immediate hurdle ahead of the $24.25 area. This is followed by the multi-month high, around the $24.50-$24.55 region set on Tuesday. A sustained strength beyond the latter will negate any near-term negative outlook and allow the XAG/USD to reclaim the $25.00 psychological mark for the first time since April 2022.