Silver Price Analysis: XAG/USD bears setting sights on downside extension

• Silver prices are in the throes of a fresh extension of the bearish trend. 
• Bears are inspecting the price action closely on the 4-hour time frame.

The price of silver has offered a bearish scenario according to both the weekly and daily time frames which set prospects of a test below the monthly 38.2% Fibonacci retracement.

Should the price remain submerged below the 38.2% Fib, a weekly extension to a 50% mean reversion of the monthly bullish trend puts the $20.65s on the cards.

Meanwhile, the following is a top-down analysis which illustrates a near term trading opportunity in fading the daily correction and targeting a -0.272 Fib level of the correction:

If the price holds the 38.2%, then there are bullish prospects.

However, there is room for a further test of the to the downside according to the following analysis:

Weekly chart

As can be seen, the price is in the throes of a downside extension of the bearish correction with the price already correcting a significant portion of the impulse. 

Additionally, the weekly wick is expected to be filled in on lower time frames. 

Daily chart

The daily time frame shows that the price has also corrected a recent daily bearish impulse. 

The correction is significant enough to expect a downside extension of the impulse in the coming sessions. 

The 4-hour time frame offers a trade set-up with a 1:3 risk to reward ratio as follows:

As illustrated in the above chart, a sell limit, stop loss and TP market order could be placed with an entry around $23.46 to offer a 1:3 risk to reward when the price breaks towards the next expected support.