Silver Price Forecast: XAG/USD seems vulnerable below $49.35-$49.40 pivotal resistance

• Silver struggles to capitalize on a modest Asian session uptick to the $48.55-$48.60 region.
• The technical setup favors bearish traders and backs the case for a further depreciation.
• A sustained strength beyond $49.35-$49.40 is needed to negate the negative outlook.

Silver (XAG/USD) attracts some sellers following an Asian session uptick to the $48.55-$48.60 region and erodes a part of the previous day's gains. The white metal currently trades around the $47.75 region, down 0.70% for the day.

From a technical perspective, the XAG/USD has been struggling to build on its strength beyond the 38.2% Fibonacci retracement level of the corrective slide from the all-time peak touched in October, around the $49.35-$49.40 supply zone. This, in turn, favors bearish traders and back the case for a further near-term depreciating move.

However, neutral oscillators on the daily chart make it prudent to wait for acceptance below the $47.00 mark before placing fresh bearish bets. The XAG/USD might then accelerate the fall towards the $46.45 intermediate support en route to the $46.00 round figure before aiming to retest the October swing low, around the $45.75 region.

On the flip side, the Asian session high, around the $48.55-$48.60 zone, might now act as an immediate hurdle, above which the XAG/USD could reclaim the $49.00 mark. Any further move up, however, might remain capped near the $49.35-$49.40 region. A sustained strength beyond the latter might shift the bias in favor of bullish traders.

The subsequent move up has the potential to lift the XAG/USD towards the $50.00 psychological mark, which coincides with the 50% Fibo. retracement level. The momentum could extend further towards the $50.55-$50.60 intermediate hurdle en route to the $51.00 mark and the $51.20 region, or the 61.8% Fibo. retracement level.

Silver 4-hour chart