Silver rebounds from over a two-week low, though the upside seems limited.
The technical setup supports prospects for the emergence of fresh sellers.
A move beyond a descending trend-line is needed to negate the bearish bias.
Silver (XAG/USD) stages a goodish recovery from the $22.20-$22.15 area, or over a two-week low touched earlier this Thursday and builds on its steady intraday ascent through the first half of the European session. The white metal climbs to a fresh daily peak, around the $22.40 region in the last hour, though the technical setup seems tilted in favour of bearish traders and warrants caution before positioning for any further appreciating move.
The recent repeated failures near the $23.30 supply zone, which coincides with a descending trend-line hurdle extending from the late December peak, and a subsequent breakdown through a short-term trading range validate the negative outlook. Moreover, oscillators on the daily chart have just started gaining negative traction and are still far from being in the oversold territory. This, in turn, suggests that the path of least resistance for the XAG/USD is to the downside and any further move up might still be seen as a selling opportunity
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