Silver Price Forecast: XAG/USD struggles below $36.00 mark; bears seem non-committed

• Silver meets with a fresh supply and stalls the overnight recovery from a multi-day low.
• The mixed technical setup warrants some caution before positioning for deeper losses.
• A sustained strength beyond $37.00 is needed to negate any near-term negative bias.

Silver (XAG/USD) struggles to capitalize on the overnight goodish rebound from the $35.40 area or a multi-day trough and attracts fresh sellers during the Asian session on Tuesday. The white metal currently trades around the $35.85 region, down 0.70% for the day.

From a technical perspective, the Moving Average Convergence Divergence (MACD) histogram and the signal line on the daily chart have turned lower. However,  the daily Relative Strength Index (RSI, 14) remains above 50, warranting some caution for the XAG/USD bears and before positioning for deeper losses. Hence, any subsequent fall might continue to find decent support near the $35.50-$35.40 horizontal zone.

Against the backdrop of last week's failure near the $37.00 mark, a convincing break below the said support could prompt some technical selling and make the XAG/USD vulnerable to accelerate the fall toward the $35.00 psychological mark. Some follow-through selling could drag the commodity further toward intermediate support near the $34.75 area en route to the next relevant support near the $34.45 region.

On the flip side, any move beyond the $36.00 round figure might now confront some hurdle near the $36.20 region. A sustained strength beyond the latter could allow the XAG/USD to make a fresh attempt towards conquering the $37.00 mark and retest the highest level since February 2012, around the $37.30-$37.35 region touched earlier this month. The subsequent move up should pave the way for an extension of a nearly three-month-old uptrend.

Silver daily chart