#XAGUSD @ 18.820 Silver scales higher for the third successive day and climbs to a two-week high on Friday. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Silver scales higher for the third successive day and climbs to a two-week high on Friday.
• Mixed technical set-up warrants caution for bulls, before positioning for further move up.
• A convincing break below the $18.00 mark is needed to shift the bias in favour of bears.

The pair currently trades last at 18.820.

The previous day high was 18.74 while the previous day low was 18.32. The daily 38.2% Fib levels comes at 18.58, expected to provide support. Similarly, the daily 61.8% fib level is at 18.48, expected to provide support.

Silver prolongs its recent recovery move from the lowest level since June 2020 and gains traction for the third successive day on Friday. This also marks the fifth day of a positive move in the previous six and lifts the white metal to a two-week high, closer to the $19.00 mark during the first half of the European session.

This week’s breakout through the top end of a nearly one-month-old descending channel and a subsequent strength beyond the 100-period SMA on the 4-hour chart is seen as a key trigger for bullish traders. This might have set the stage for additional near-term gains, though mixed oscillators on hourly/daily charts warrant some caution.

Technical indicators on the daily chart – though have been recovering from the negative territory – as yet to confirm a bullish bias. Moreover, RSI (14) on the 4-hour chart is already flashing slightly overbought conditions. This makes it prudent to wait for some consolidation or a modest pullback before positioning for the next leg up.

From current levels, any meaningful slide is likely to find decent support near the $18.60-$18.50 region ahead of the descending trend-channel breakpoint, currently around the $18.20-$18.15 zone. Some follow-through selling below the $18.00 mark will negate the positive bias and suggest that the corrective bounce has run out of steam.

On the flip side, momentum beyond the $19.00 round figure is likely to confront stiff resistance near the 200-period SMA on the 4-hour chart. The said barrier, currently around the $19.35 region, should now act as a key pivotal point. Sustained strength beyond will reaffirm the constructive outlook and pave the way for further upside.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 18.81 at the time of writing. Pair opened at 18.53 and is trading with a change of 1.51 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 18.96, 50 SMA 19.26, 100 SMA @ 20.58 and 200 SMA @ 22.22.

The previous day high was 18.74 while the previous day low was 18.32. The daily 38.2% Fib levels comes at 18.58, expected to provide support. Similarly, the daily 61.8% fib level is at 18.48, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 18.32, 18.11, 17.9
• Pivot resistance is noted at 18.74, 18.95, 19.16

[/s2If]
Join Our Telegram Group