Silver struggled to capitalize on the previous day's late rebound from a one-week low and edged lower for the second successive day on Thursday. The white metal remained on the defensive through the early European session and was last seen trading around the $21.35-$21.30 region.
Given that the XAG/USD has repeatedly failed to find acceptance above the 200-period SMA on the 4-hour chart and faced rejection near the $22.00 mark, the bias seems tilted in favour of bearish traders. The negative outlook is reinforced by the fact that oscillators on 4-hour/daily charts have again started drifting into the bearish territory.
Hence, a subsequent fall below the $21.00 round-figure mark, en-route the monthly low around the $20.90 region, now looks like a distinct possibility. The downward trajectory could further get extended and drag the XAG/USD back towards the YTD low, around the $20.45 region set in May. Bears might then aim to challenge the $20.00 psychological mark.
On the flip side, the $21.50-$21.55 region now seems to have emerged as immediate strong resistance. Any meaningful recovery attempted beyond the said barrier could be seen as a selling opportunity near the $21.75 region (200-period SMA). This, in turn, should cap the upside for the XAG/USD near the $21.90-$22.00 supply zone, at least for now.
The latter should act as a pivotal point, which if cleared decisively would negate the negative outlook and shift the bias in favour of bullish traders. The XAG/USD might then accelerate the positive momentum towards an intermediate resistance near the $22.30 area en-route the $22.50-$22.60 hurdle and the $23.00 round-figure mark.
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