Silver Price Forecast: XAG/USD dives to over one-week low, further below $36.00

• Silver attracts heavy sellers for the third straight day and seems vulnerable to slide further.
• An intraday breakdown below the 23.6% Fibo. level could be seen as a key trigger for bears.
• Some follow-through selling below 100- SMA on H4 should pave the way for deeper losses.

Silver (XA/USD) is seen prolonging its retracement slide from the highest level since February 2012 touched earlier this week and losing ground for the third consecutive day on Friday. The downward trajectory drags the white metal to over a one-week low, around the $35.65 area during the Asian session.

From a technical perspective, the XAG/USD's failure to build on this week's move beyond the $37.00 mark and the subsequent decline below the 23.6% Fibonacci retracement level of the May-June rally favor bearish traders. Moreover, oscillators on the 4-hour chart have been gaining negative traction and back the case for a further depreciating move. That said, it will still be prudent to wait for some follow-through selling below the mid-$35.00s, or the 100-period Simple Moving Average (SMA) on the 4-hour chart, before positioning for deeper losses.

The XAG/USD might then accelerate the corrective slide towards the 38.2% Fibo. level, around the $35.15 region, en route to the $35.00 psychological mark. The downward trajectory could extend further toward the $34.75 intermediate support before the commodity eventually drops to the $34.45 area or the 50% retracement level. The latter should act as a key pivotal point, which if broken decisively will suggest that the white metal has topped out and pave the way for some meaningful depreciating move in the near term.

On the flip side, any attempted recovery back above the $36.00 mark, coinciding with the 23.6% Fibo. level, could attract fresh sellers and remain capped near the $36.40-$36.50 supply zone. A sustained strength beyond the said barrier, however, might shift the bias back in favor of bullish traders and lift the XAG/USD back towards the $37.00 round figure en route to the multi-year high, around the $37.30-$37.35 area touched on Wednesday.

Silver 4-hour chart