XAG/USD Price Analysis: Silver bears waiting to pounce from daily 38.2% Fibo

• Silver prices are running out of bullish momentum as price heads into key resistance. 
• XAG/USD's 38.2% Fibo on the daily time frame is in focus. 

Bears have rejected the price and left a strong monthly rejection wick which opens the case for a downside continuation on the lower time frames. 

The following is a top-down analysis that illustrates where the next bearish trading opportunities could arise. 

Monthly chart

The monthly chart is offering a compelling case for the downside.

RSI is overbought and while that by no means confirms the bearish bias, the wick on the current weekly candle represents a bullish correction on the lower time frames. Therefore, it would be expected to be filled in. 

Weekly chart

Old support would be expected to be tested at this juncture as the price stalls in its correction of the weekly bearish impulse. 

Daily chart 

The 38.2% Fibonacci retracement level is in focus and a downside test of the weekly 61.8% would be expected. 

4-hour chart

The price is still in bullish territory and on the verge of a firm test of the resistance stricture and the 38.2% Fibonacci retracement level. 

Failures there, with Momentum at resistance, will bring the 4-hour support into focus. A break of which will open prospects of a downside test of recent lows and a possible extension lower.