#XAGUSD @ 19.860 Silver attracts some dip-buying on Tuesday and inches back closer to a multi-week high. (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 attracts some dip-buying on Tuesday and inches back closer to a multi-week high.
• The set-up favours bullish traders and supports prospects for additional near-term gains.
• Only a sustained break below the $18.45-40 area will negate the near-term positive bias.

The pair currently trades last at 19.860.

The previous day high was 20.02 while the previous day low was 18.83. The daily 38.2% Fib levels comes at 19.56, expected to provide support. Similarly, the daily 61.8% fib level is at 19.28, expected to provide support.

Silver reverses its early lost ground and moves back to the $19.80 area during the first half of the European session on Tuesday. The white metal is currently placed just below a nearly four-week high touched the previous day and seems poised to prolong its recent recovery from the $17.55 area, or over a two-year low.

The positive outlook is reinforced by the fact that technical indicators on the daily chart have just started moving in the bullish territory and are still far from being in the overbought zone. That said, the overnight rejection by a descending trend line extending from the April swing high warrants some caution for aggressive bullish traders.

Hence, it will be prudent to wait for a convincing daily close above the trend line, currently at around the $19.75 mark before positioning for any further appreciating move. The XAG/USD might then climb to test the 100-day SMA, near the $20.45 region, before accelerating the move towards reclaiming the $21.00 round-figure mark.

Some follow-through buying has the potential to lift the XAG/USD towards the next relevant hurdle, around the $21.50 area. The upward trajectory could further get extended towards the $22.00 mark. This is closely followed by the very important 200-day SMA, around the $22.15 region, which should act as a strong barrier for the commodity.

On the flip side, any further slide below the daily low, around the $19.55-$19.50 area, now seem to find decent support near the $19.25 region, or the 50-day SMA. Any subsequent slide could be seen as a buying opportunity and remain limited near the $18.45-$18.40 support zone. A convincing break below the latter is needed to negate the positive bias.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 19.81 at the time of writing. Pair opened at 19.79 and is trading with a change of 0.1 % .

The pair is trading above its 20 Daily moving average @ 18.84, above its 50 Daily moving average @ 19.24 , below its 100 Daily moving average @ 20.49 and below its 200 Daily moving average @ 22.19

The previous day high was 20.02 while the previous day low was 18.83. The daily 38.2% Fib levels comes at 19.56, expected to provide support. Similarly, the daily 61.8% fib level is at 19.28, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 19.08, 18.36, 17.89
• Pivot resistance is noted at 20.26, 20.73, 21.45

[/s2If]
Join Our Telegram Group